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Bharat Petroleum Corporation Limited(BPCL) conducted a meeting with its Board of Directors on 1st September, 2021. As per this meeting, it has declared, to the Exchange, an Interim Dividend of ₹58 per equity share. The ex-dividend date for the purpose of payment of dividends is 16th September 2021.
What are dividends?
A dividend is a part of the company's profits given to its shareholders to reward them for their investment in the company.
How does this corporate action impact Futures & Options Contracts?
Impact on Futures Contract:
- Base price of the Futures contracts on 16th September 2021 will be reference rate less aggregate amount of dividend i.e. ₹58
- The reference rate to be reckoned for this purpose shall be the daily mark to market settlement price of the relevant futures contract
Impact on Options Contract:
- The full value of dividend i.e. ₹58 would be deducted from all the cum-dividend strike prices on the.ex-dividend date
- The details of the old and corresponding new options contracts that shall be available for trading from 16th September 2021 would be notified on 15th September 2021.
For all positions taken before 16th September 2021, you may see a slight deviation in the carried forward (c/f) average price of BPCL due to the corporate action mentioned above.
To know more, read the circular here.
