Tuesday, December 14, 2021 4:46 pm
National Mineral Development Corporation (NMDC) conducted a meeting with its Board of Directors on 3rd December, 2021. As per this meeting, it has declared, to the Exchange, an Interim Dividend of ₹9.01 per equity share. The ex-dividend date for the purpose of payment of dividends is 14th December 2021.
**What are dividends?**A dividend is a part of the company's profits given to its shareholders to reward them for their investment in the company.
How does this corporate action impact Futures & Options Contracts?Impact on Futures Contract:
-
Base price of the Futures contracts on 14th December 2021 will be reference rate less aggregate amount of dividend i.e. ₹9.01The reference rate to be reckoned for this purpose shall be the daily mark to
market settlement price of the relevant futures contract
Impact on Options Contract:
The full value of dividend i.e. ₹9.01 would be deducted from all the cum-dividend strike prices on the.ex-dividend date
For all positions taken before 14th December 2021, you may see a slight deviation in the carried forward (c/f) average price of NMDC due to the corporate action mentioned above.
To know more, read the circular here.
