The Board of Directors of MPHASIS Limited (MPHASIS) declared a dividend of Rs. 57 per share, with the ex-dividend date set for July 09, 2025.
SEBI has prescribed a framework for the exchanges to adjust corporate actions in derivative contracts at the time of the corporate action. The exchange has published everything regarding the adjustments in case of corporate actions here . Accordingly, if a company declares a dividend at and above 2% of the market value of the underlying security, it is considered an extraordinary dividend, and the exchange will take action in the adjustment of the futures and options contracts in the underlying security.
Since the dividend declared by MPHASIS is above 2% of the market value of the security, the exchange has published this circular on the adjustment of F&O contracts in MPHASIS on the ex-date: July 09, 2025.
Adjustment for future contracts:
All positions in futures contracts of MPHASIS will be marked-to-market on the last cum-dividend date, i.e., July 08, 2025, based on the daily settlement price of the respective futures contract. Subsequently, open positions will be carried forward at the daily settlement price less ₹57 (dividend amount) for the respective futures contract.
From July 09, 2025 (ex-dividend date), daily mark-to-market settlement of the futures contracts will continue as per normal procedures.
For example:
Assume you bought 1 lot (275 quantities) of MPHASIS July futures on July 08, 2025, at ₹2,888, and the daily settlement price at market close is ₹2,900, you would have made a mark-to-market profit of ₹12 per share.
On July 09, 2025, the previous day’s position will be carried forward at ₹2,831 (i.e., 2,888 – 57). If the closing price on July 09, 2025, is ₹2,850, you’ll make a mark-to-market profit of ₹19 per share.
Adjustment for option contracts:
The full value of the dividend, i.e., ₹57, will be deducted from all the cum-dividend strike prices on the ex-dividend date. All positions in existing strike prices will continue to exist in the corresponding new adjusted strike prices.
For example:
The strike price of the ₹2,880 Call Option will be reduced to ₹2,823 on July 09, 2025, and the positions in the ₹2,880 Call Option will continue to exist in the ₹2,823 Call Option.
The lot size of the F&O contracts will not change.
Also, if you hold equity shares of MPHASIS in your Demat account as of July 09, 2025 (ex-date), you will be entitled to receive the dividend, which will be credited directly to your primary bank account within 30 to 45 days from the record date.