Dividend Adjustment Of NTPC Full Details

Get all the details on the Dividend Adjustment of NTPC, including the date of ex-dividend, record date, cash, and F&O adjustments, and more. Learn how NTPC’s dividends will be adjusted in line with SEBI guidelines.

On January 27, and January 28, 2023, Maharatna company NTPC LIMITED (NTPC) India’s largest energy conglomerate announced that its Board of Directors has approved an Interim Dividend of ₹ 4.25 per equity share. This is equivalent to a payout of 2.56% of the share price, based on the closing price of ₹ 166.30 on January 27, 2023. The Ex-date for dividend is February 4, 2023, and the record date for the payment of dividends is February 4, 2023.

Dividend Adjustment of NTPC

SEBI’s Guidelines for Dividend Adjustment in F&O

SEBI guidelines state that companies whose dividends are more than 2% of the closing price on the day before the date of declaration of dividends must adjust the dividends in the futures and options market. In line with these guidelines, NTPC dividends will be adjusted in the futures and options market as well as in the cash market.

Dividend Adjustment of NTPC in the Cash Market

In the cash market, the last cum-dividend date for NTPC is February 3, 2023. Investors who purchase NTPC shares on or before this date will receive the dividends directly in their bank accounts.

Dividend Adjustment of NTPC the Futures Segment

In the futures market, the value of the NTPC futures contract will be adjusted by deducting the dividend amount from the closing price on February 3, 2023. For example, if NTPC closes at ₹ 169.25 on February 3, 2023, the value of a future contract will be ₹ 169.25 x 5700 = ₹ 9,64,725. On February 4, 2023, the value of the same contract will be ₹ 165 x 5700 = ₹ 9,40,500. The difference between these two values will be credited to the future buyer’s account and debited from the future seller’s account.

Dividend Adjustment of NTPC in the Options Market

In the options market, the dividend amount will be deducted from the strike price (call/put) of the option for ongoing months contracts. This applies to the contracts expiring on February 23, 2023, March 29, 2023, and April 27, 2023. This can be understood through the table given below:

Dividend Adjustment of NTPC

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