Archive · 23 Aug 2025
HDFC Bank Adjusts F&O Contracts Due to Bonus Issue
HDFC Bank is giving out extra shares to its shareholders.
This means the prices of the stock and its derivatives contracts (like futures and options) need to be changed to reflect this.
On August 26, the price and contracts will be adjusted.
For futures, the price will be cut in half, and the number of shares per contract will double.
For options, all the prices at which you can buy or sell the stock will also be cut in half.
This is done so that the value of your investments stays the same, even with the new shares.
Traders do not have to worry because the changes are just a reflection of the extra shares.
HDFC Bank announced a 1:1 bonus issue, leading to adjustments in futures and options (F&O) contracts.
August 26 is the record/effective date for the adjustments.
Futures contracts will be adjusted based on the August 25 settlement price, divided by 2.
If the futures close at ₹2,000 on August 25, they will be revised to ₹1,000, and lot size will be multiplied by 2.
Options strike prices will be divided by 2 from August 26.
- Who
- HDFC Bank and its traders.
- What
- HDFC Bank is adjusting its futures and options contracts due to a bonus issue.
- When
- August 26 is the record/effective date for the adjustments.
- Where
- N/A
- Why
- To reflect a 1:1 bonus issue and maintain contract value.
- Company
- HDFC Bank
- Bonus Ratio
- 1:1
- Adjustment Factor
- 2
- Record/Effective Date
- August 26
- Futures Adjustment Basis
- August 25 settlement price
- Lot Size Change
- Multiplied by 2
- Options Adjustment
- Strike prices divided by 2