F&O trading problem

[Naresh62]

I have taken short positions on 12th November in future contract expire 26 November in REC LIMITED @119.25 but at 9.34 PM in my trading account auto trade brought and sell with difference of Rs.6 due to corporate action. Is it possible or not. It has effect my profile.

[ShubhS9]

As REC has announced extraordinary dividend on of >5%, On ex-date, ie. November 13, the prices of the F&O were adjusted accordingly, this does not affect your P&L. You can check out this post, more has been explained in detail there:

Adjustment of F&O contracts in REC Limited

The Board of Directors of REC Limited at its meeting held on November 06, 2020, declared an interim dividend of Rs. 6 per share, the ex-dividend date being November 13, 2020. SEBI has prescribed a framework to the exchanges for adjustment of 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 5% of the market val…

[Naresh62]

My broker(
icici direct )has deduced my profit of Rs.6 in my trading account

[ShubhS9]

Best if you get in touch with them.