Short Take: ONGC F&O Contract Adjustments

Oil & Natural Gas Corporation (ONGC) (₹267.40) has announced an interim dividend of ₹6.25. The face value per equity share is ₹5. The dividend will lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.

The company has decided February 18 as the record/effective date. On this day, the stock price and all derivatives contracts on ONGC will be adjusted appropriately.

With respect to adjustment in futures contracts, the reference rate of the relevant contract on February 17 will be considered. Reference rate will be the mark-to-market settlement price of the relevant futures contract. So, the open positions shall be carried forward to February 18 at the daily settlement price on February 17 minus ₹6.25, the dividend amount.

Suppose the February expiry futures closes at ₹270 on February 17, it will be revised to ₹263.75 (₹270 minus ₹6.25). Hence, the contract value will come down.

Likewise, in options, all the strike prices in the option chain of ONGC will be subtracted by ₹6.25 from February 18. For example, the strike price of 268 and 260 will be modified to 261.75 and 253.75 respectively.

That said, the above measures are not likely to impact the overall trend of this stock. So, traders can stick to their views and are only required to note the changes in the contracts that they hold.

Published on February 14, 2026