Announcements

NMDC Limited conducted a meeting with its Board of Directors on 11th March 2021. As per this meeting, it has declared, to the Exchange, an Interim Dividend of Rs. 7.76  per equity share on equity shares of Rs.1/- each, of the company.  The record date for the purpose of payment of dividends is 23rd March 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: 

1. The Base price of the Futures contracts on 22nd March 2021, will be the reference rate less aggregate amount of dividend i.e. Rs. 7.76 /-
2. The reference rate for this purpose will be the daily mark to market settlement price of the relevant futures contract.

Impact on Options Contract:
1. The full value of dividend i.e. Rs. 7.76 /- would be deducted from all the cum-dividend strike prices on the ex-dividend date.
2. The details of the old and corresponding new options contracts that shall be available for trading from 22nd March 2021 would be notified on 19th March 2021.

For all positions taken before 22nd March 2021, you may see a slight deviation in the carried forward (c/f) average price of NMDC due to the corporate action mentioned above.

To know more, read the circular here.

PFC conducted a meeting with its Board of Directors on 12th March 2021. As per this meeting, it has declared, to the Exchange, an Interim Dividend of Rs. 8.00  per equity share on equity shares of Rs.10/- each, of the company.

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: 

1. The base price of the Futures contracts on March 19, 2021, will be the reference rate less aggregate amount of dividend i.e. Rs. 8.00.
2. The reference rate for this purpose will be the daily mark to market settlement price of the relevant futures contract. 

Impact on Options Contract: 

1. The full value of dividend i.e. Rs. 8.00 would be deducted from all the cum-dividend strike prices on the ex-dividend date.
2. The details of the old and corresponding new options contracts that shall be available for trading from March 19, 2021, would be notified on March 18, 2021

For all positions taken before 19th March 2021, you may see a slight deviation in the carried forward (c/f) average price of PFC due to the corporate action mentioned above.

To know more, read the circular here.

The Government of India has announced a 16.12% stake sale in Tata Communication Ltd. via an offer-for-sale and here are some details: 

Floor price: Rs. 1161 per equity share

Application date for retail investors: Wednesday, 17th March 2021

Click here to get more details on this offer.

What is offer-for-sale (OFS)?

OFS is an investment opportunity for all types of investors to own shares of a listed company, where a promoter wants to sell off part of their investment. This is conducted on a specific date, via a process that is separate from the normal market trading process. 

How is OFS different from normal market trading?

• Unlike normal market trading, OFS is based on a bidding platform provided by the Exchange. 
• All orders placed must be above the base price called floor price set up by the company.
• Investors can bid for even a single share and can also place multiple order bids. 
• All shares allotted to investors via an OFS are settled on T+1 day 

For more information on OFS, click here

Why choose OFS over buying shares directly through the exchange?
The floor price set by a company is usually lower than the current market price at which the stock is being traded. Thus, buying shares via an OFS gives an investor the opportunity to purchase shares of that company at a lower price. However, since this a bidding-based system, there may be some occasions where the OFS allotment price crosses the current market price of the company. 

How to apply for an OFS on Upstox? 

Applying for an OFS is quick and easy. You can do this via our Call-N-Trade facility. 

All you need to do is call us on 022-61309998 / 022-71309998 and place your order bids by quoting the quantity and price at which you wish to buy the shares. Please make sure you have sufficient funds in your account, to enable your order bid to be accepted by Upstox. In order to successfully place your order, you need to have your Call-N-Trade TPIN handy. You can find your T-PIN find here.


Note: The cut-off time to accept bids is 2:30 PM. 

For Tata Communications Ltd., the floor price is Rs. 1161 per share so remember to place your bids at or above this price. The cut-off price as determined on the first day of the bidding (16th March 2021) for the general category is Rs. 1172.25 per equity share. 

The Indian Premier League Governing Council (IPL GC) today announced Upstox, one of India’s leading and fastest-growing digital brokerage firms, as an official partner for IPL, which will begin on April 9th, 2021. This will be a multi-year partnership.

Founded with the vision of making financial investing easy, equitable, and affordable to all Indian investors, Upstox provides online investments in Stocks, Mutual funds, Digital Gold, Derivatives, and ETFs for both investors and traders. Backed by marquee investors such as Tiger Global, Upstox currently has over 2.8 million customers.

Mr Brijesh Patel, Chairman, IPL, said  "We are pleased to have Upstox on board as an official partner of the Indian Premier League 2021. As one of the most-watched cricket leagues in India, IPL along with Upstox, one of India’s fastest-growing digital-trading platforms, can create a huge impact on the audience, especially the millions of Indian youth who are financially independent and looking for more options to manage their portfolios."

Commenting on the partnership, Mr. Ravi Kumar, Co-founder & CEO, Upstox said "We are thrilled to partner with BCCI for IPL 2021. In India, Cricket is more than just a sport. It is an important part of our culture and social life, with a huge fan-following, especially by the millennials. IPL has paved a bold new direction to Indian cricket in the last decade just like Upstox, which is revolutionizing finance in India. This is what sparks a natural connection between both the brands. With this integration of sports and finance, we intend to spread financial awareness across the country."

For the first time in the history of IPL, a brand in the Stock and Mutual Fund sector would be partnering at large to create awareness about this category.

Click here to read the official BCCI announcement. 

The two-day strike by The United Forum of Bank unions (UFBU) on 15th and 16th March 2021 could affect some banking services for various Public Sector Banks. Here is what this means.

What’s happening:

Different payment modes with various  Public Sector Banks (PSBs) may get impacted by this two-day strike. Some transactions may even get rejected or delayed.  This, in turn, could affect the Net Asset Value (NAV) for Mutual Funds.

What is NAV:

Net Asset Value or NAV is the cost of each unit of Mutual Fund. This cost or value changes every day. 

Since 1st February 2021, all Mutual Fund transactions receive the NAV on the day of fund realization - the day of the sale. 

How the current happenings impact NAV

The experts at Upstox are anticipating that there could be a possible delay in fund realization due to the affected services of these Public Sector Banks.

If a Lump Sum or SIP payment for a Mutual Fund is impacted by the above declared two-day strike, and is delayed or rejected, the Mutual Funds allotted to you will depend on the day that your payment was received. This is because NAV is subject to change every day. Thus the NAV allotted will be as per the day the payment was received, which may not necessarily be the day that the payment was initiated. 

We hope this helps you make more informed and smarter investment decisions.

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