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.