The Board of Directors of NMDC Limited (NMDC) has declared a dividend of ₹2.50 per equity share, with the ex-dividend date being February 13, 2026.
SEBI has prescribed a framework for exchanges to adjust derivative contracts at the time of corporate actions. The exchange has published detailed guidelines on such adjustments. As per this framework, if a company declares a dividend that is equal to or more than 2% of the market value of the underlying security, it is treated as an extraordinary dividend, and the exchange carries out adjustments in the futures and options contracts of the stock.
Since the dividend declared by NMDC is above 2% of the market value of the security, the exchange has issued a circular on the adjustment of F&O contracts in NMDC on the ex-date, February 13, 2026.
Adjustment for future contracts:
All positions in futures contracts of NMDC will be marked-to-market on the last cum-dividend date, i.e. February 12, 2026, based on the daily settlement price of the respective futures contract. Subsequently, open positions will be carried forward at the daily settlement price less ₹2.50 (dividend amount) for the respective futures contract.
From February 13, 2026 (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 (6750 quantities) of NMDC February futures on February 12, 2026, at ₹85, and the daily settlement price at market close is ₹87, you would have made a mark-to-market profit of ₹2 per share.
On February 13, 2026, the previous day’s position will be carried forward at ₹84.50 (i.e. 87 − 2.50). If the closing price on February 13, 2026, is ₹86, you’ll make a mark-to-market profit of ₹1.50 per share.
Adjustment for options contracts:
The full value of the dividend, i.e. ₹2.50, 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 ₹85 Call Option will be reduced to ₹82.50 on February 13, 2026, and the positions in the ₹85 Call Option will continue to exist in the ₹82.50 Call Option.
The lot size of the F&O contracts will not change.
Also, if you hold equity shares of NMDC in your Demat account as of February 13, 2026 (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.