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Div on future positions

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  • D Offline
    D Offline
    Deven Shah
    wrote on last edited by
    #1

    Dear Sir,
    I know that usually dividend is not paid on a future contract?
    But want to know under what circumstances dividend is paid to future contract as well?
    For example ... IOC price is 89 and the company has declared 5 Rs as dividend? would it be eligible for dividend adjustment on futures cotract?
    Any help will be highly appreciated...
    Thx,
    Deven

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  • Neha Pandey Offline
    neha.pandey@definedge.comN Offline
    Neha Pandey

    Definedge

    wrote on last edited by
    #2

    Charts are not adjusted in normal dividend cases; adjustments are only made when significant dividends are involved.

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  • D Offline
    D Offline
    Deven Shah
    wrote on last edited by
    #3

    @Neha-Pandey Tysm ... significant dividend is above 10% of market value of stock??

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  • D Offline
    D Offline
    Deven Shah
    wrote on last edited by
    #4

    There is a clarification from NSE ... the div is looked at from the face value point of view ... and there will be strike price adjustment for IOC.

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