Where are these adjustments decided?
Adjustments are determined and implemented by exchanges such as:
• National Stock Exchange of India
• BSE Limited
They follow standardized methodologies to ensure fairness and transparency.
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Where can I check corporate action adjustments?
You can refer to: • Official circulars on the National Stock Exchange of India website • Announcements on the BSE Limited website
Which Corporate Actions affect F&O contracts?
The following corporate actions typically lead to adjustments in derivatives contracts: • Stock splits • Bonus issues • Extraordinary (special) dividends • Rights issues • Mergers and demergers • Capital reduction Regular cash dividends generally do ...
Will corporate actions impact P&L?
No. Adjustments are designed to neutralize the financial impact of corporate actions. While contract specifications may change, the net economic exposure and P&L remain unchanged.
How are Futures contracts adjusted?
Depending on the corporate action, exchanges may modify: • Futures price • Lot size • Number of contracts These adjustments are made to maintain the overall contract value, ensuring no artificial profit or loss arises.
What does 'Available Margin' mean?
Available Margin' is the maximum amount upto which you can place trades. It consists of your funds balance (cash deposited with IIFL) and margin obtained by pledging the holdings present in your demat account. Adjustments for trades that you place ...