Find out all the information about the Dividend Adjustment of HEROMOTOCO for the quarter ending Dec 2023, including the ex-dividend date, record date, cash and F&O adjustments, and more. Discover how HERO MOTO CORP LIMITED will adjust its dividends according to SEBI regulations.
HERO MOTO CORP LIMITED announces the Interim Dividend of ₹ 65 per share on February 7, 2023. This translates to a yield of 2.41% based on the closing price of ₹ 2695 on February 6, 2023. The ex-dividend date is set for February 17, 2023, with the record date for dividend payment scheduled for February 17, 2023.
SEBI’s Guidelines for Dividend Adjustment in F&O
As per SEBI regulations, companies declaring dividends higher than 2% of the preceding day’s closing price must adjust the dividends in futures and options markets. In compliance with these rules, HEROMOTOCO will adjust its dividends in both the futures/options and cash markets.
Dividend Adjustment of HEROMOTOCO for Dec 2023 in the Cash
Investors who buy HEROMOTOCO shares on or prior to February 16, 2023, will receive the cash dividends directly to their bank accounts, as this is the last cum-dividend date for the stock in the cash market.
Dividend Adjustment of HEROMOTOCO for Dec 2023 the Futures
In the futures market, HEROMOTOCO’s futures contracts will be adjusted by subtracting the dividend amount from the February 16, 2023 closing price. For instance, if HEROMOTOCO closes at ₹ 2765 on February 16, 2023, one futures contract would be worth ₹ 2765 x 300 = ₹ 8,29,500. The next day, February 17, 2023, the value of the same contract would be adjusted to ₹ 2700 x 300 = ₹ 8,10,000. The difference between these two values will be transferred from the futures seller’s account to the futures buyer’s account.
Dividend Adjustment of HEROMOTOCO for Dec 2023 in the Options
In the options market, the dividends will be subtracted from the call and put option strike prices for ongoing monthly contracts i.e. February 23, 2023, and those expiring on, March 29, 2023, and April 27, 2023. This can be understood through the table given below:
HEROMOTOCO dividend adjustment
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