Dividend Adjustment Of ITC For March 2023

Find out all the information about the Dividend Adjustment of ITC for March 2023, including the ex-dividend date, record date, cash and F&O adjustments, and more. Discover how ITC Limited will adjust its dividends according to SEBI regulations.

ITC Limited announced the Final Dividend of ₹ 6.75 and Special Dividend of ₹ 2.75 i.e. ₹ 9.5 per share on May 18, 2023. This translates to a yield of 2.22% based on the closing price of ₹ 427.60 on May 17, 2023. The ex-dividend date is set for May 30, 2023, with the record date for dividend payment scheduled for May 30, 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, ITC will adjust its dividends in both the futures/options markets and the cash market.

Dividend Adjustment of ITC for March 2023 in the Cash

Dividend Adjustment Of ITC For March 2023

Investors who buy ITC shares on or prior to May 26, 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 ITC for March 2023 the Futures

ITC’s futures contracts will be adjusted by subtracting the dividend amount from the May 29, 2023 closing price in the futures market. For instance, if ITC closes at ₹ 439.5 on May 29, 2023, one futures contract would be worth ₹ 439.5 x 1600 = ₹ 7,03,200. The next working day, May 30, 2023, the value of the same contract would be adjusted to ₹ 430 x 1600 = ₹ 6,88,000.00 The difference between these two values will be transferred from the futures seller’s account to the futures buyer’s account.

Dividend Adjustment of ITC for March 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. June 29, 2023, and those expiring on July 27, 2023, and August 31, 2023. This can be understood through the table given below:

ITC Dividend Adjustment

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