Wednesday, January 1, 2025 2:26 pm
ITC Limited has declared to the Exchange the issuance and allotment of 1 equity share of ITC Hotels for every 10 equity shares of ITC Limited held by existing shareholders. The record date to determine which shareholders will be eligible for this is 6 January 2025.
Due to this corporate action, keep in mind the following impact on your F&O contracts
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All existing contracts in the underlying ITC with expiry dates of 30 January, 27 February, and 27 March shall expire on 3 January 2025 and shall be physically settled as per the Exchange rules
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The methodology of settlement shall be separately intimated by respective Clearing
Corporations.
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To take physical delivery of shares for your ITC position (or to cover a short position), you need to maintain the contract's full value by the end of 2 January 2025.
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No fresh position will be allowed under the F&O segment in ITC from 2 January 2025
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ITC positions with insufficient fund value or stock (in case of a short position) will be squared off anytime after 10 AM on 3 January 2025 on a best-effort basis
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Collateral Margins (Margin Pledge) on ITC will be subject to a 50% haircut value from 3 January 2025, onwards
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All MTF positions in ITC will be either squared off or converted to delivery, based on the availability of funds post 10 AM on 3 January 2025 on a best effort basis
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Derivatives contracts on ITC shall be introduced again (with an expiry of 30 January 2025, 27 February 2025 and 27 March 2025) from 6 January 2025 onwards
You can also refer to the circular here.
