The board of NMDC Limited has announced a demerger of its Steel business into a separate entity. As per the scheme of demerger, NMDC Limited will be issuing 1 equity shares of NMDC Steel Limited for every 1 equity share held in NMDC Limited.
The company has fixed October 28, 2022 as the record date to determine the shareholders who will be eligible for the corporate action. You can check the announcement here.
As NMDC Limited trades in the F&O segment, the following adjustments shall be carried out on the Futures and Options contracts of NMDC:
All existing contracts with expiry dates October 27, 2022, November 24, 2022 and December 29, 2022, will expire on October 25, 2022, and will be physically settled just like it happens on the day of monthly expiry. You can learn more about physical settlement here.
The settlement price for the purpose of the final settlement will be the weighted average price of NMDC.
All positions in the existing F&O contracts on the underlying NMDC will cease to exist pursuant to the final settlement on October 25, 2022. Futures and Options contracts on NMDC will be introduced again with expiry dates October 27, 2022, November 24, 2022, and December 29, 2022, from October 27, 2022, onwards.
You can check the announcement from the exchange here.
