NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

 

Circular No: NSE/F&O/014/2006                                                        February 24, 2006                                

Download No: NSE/FAOP/7206

 

Dear Members,

 

Subject: Adjustment of Futures and Options contracts in the security TITAN

 

In pursuance of the principles prescribed by SEBI for adjustments to futures and options contracts on announcement of corporate action of rights shares and in continuation to our Circular no: NSE/F&O/0011/2006 dated February 09, 2006, the following may be noted.

 

Corporate action:

 

Titan Industries Ltd. has informed the Exchange that, the Board of Directors have approved the issue of Partly Convertible Debentures (PCDs) of Rs.600 each on a rights basis in the ratio of one PCD for every twenty equity shares held in the company to the shareholders of the company as on a record date. The PCD will comprise of: 

 

(a) Part 'A' to be converted into one equity share (Face value of Rs.10/-).

 

(b) Part 'B' will be one Non-Convertible Debenture (NCD).

 

As approved by the Board in their meeting, the price of the equity share comprised in the Partly Convertible Debentures (PCD) (forming Part A of the PCD) to be issued on allotment, at Rs.350 per equity share of a face of Rs.10 per share and inclusive of premium of Rs.340 per equity share. The price of the Non-Convertible Debenture (NCD) comprised in Part B has been fixed at Rs.250 per NCD (balance amount out of Rs. 600 on due appropriation of the amount of equity shares) carrying an annual interest of 6.75% p.a. and redeemable at par at the end of 5 years from the date of allotment.

 

Further, the company has fixed Record Date of March 06, 2006 for the purpose of Rights Issue.

 

Symbol : TITAN

Rights ratio       : 1:20

Record Date     : March 06, 2006

Ex-date            : February 27, 2006

Issue Price        : 350.00

 

Adjustment factor:

 

Underlying close price on the last cum date i.e. on February 24, 2006 (P): 799.65

Issue price of the rights (S)        : 350.00

 

Number of Existing shares        =   20

Rights Entitlement

(Rights to subscribe)                 =   1

Total Entitlement                      =   21

 

Benefit per Right Entitlement

= (P – S)

= (799.65-350) = Rs. 449.65

 

Benefits per share (E)

= (449.65/ 21) = 21.4119

 

Hence, Adjustment Factor is

= (P-E)/P

= (799.65-21.4119) / 799.65

 

= 0.973223

 

 

Adjustments for Options Contracts:

 

1.      Strike Price: The adjusted strike price shall be arrived at by multiplying the old strike price by the adjustment factor.

2.      Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 822.

 

 

Adjustments for Futures Contracts:

 

  1. Futures Price: The adjusted Futures price shall be arrived at by multiplying the old Futures price by the adjustment factor.
  2. Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 822.

 

The revised strike/futures prices and the lot size on account of adjustment would appear in decimal places. The strike/futures prices shall be rounded off to the nearest tick size and the lot size shall be rounded off to the nearest integer. 

 

The details of the revised futures and option contracts available for trading in the security TITAN on February 27, 2006 are given at Annexure 1

 

The methodology for position adjustments has been separately intimated by NSCCL.

 

The above changes shall be effective from February 27, 2006.

 

Members are requested to load the following files in the NEATFO software before trading on February 27, 2006.

 

1.      Security.zip

2.      Contract.zip

3.      fo_participant.zip

 

These files can be obtained from the directory faoftp/faocommon in the Extranet server.

 

For any clarifications, members are advised to contact the following officials:

Mr Janardhan Gujaran, Mr. Arvind Goyal and Mr. Shibu Nair at 022-26598151 and 022-26598152.

 

For and on behalf of

National Stock Exchange of India Limited

 

Suprabhat Lala

Assistant Vice President – F&O Trade

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annexure – 1

.

S No.

Instrument

Symbol

Expiry

Option Type

Existing strike price

Revised strike price

1

FUTSTK

TITAN     

30-Mar-06

NA

NA

NA

2

FUTSTK

TITAN     

27-Apr-06

NA

NA

NA

3

FUTSTK

TITAN     

25-May-06

NA

NA

NA

4

OPTSTK

TITAN     

30-Mar-06

CA

620

603.40

5

OPTSTK

TITAN     

30-Mar-06

PA

620

603.40

6

OPTSTK

TITAN     

30-Mar-06

CA

640

622.85

7

OPTSTK

TITAN     

30-Mar-06

PA

640

622.85

8

OPTSTK

TITAN     

30-Mar-06

CA

660

642.35

9

OPTSTK

TITAN     

30-Mar-06

PA

660

642.35

10

OPTSTK

TITAN      

30-Mar-06

CA

680

661.80

11

OPTSTK

TITAN     

30-Mar-06

PA

680

661.80

12

OPTSTK

TITAN     

30-Mar-06

CA

700

681.25

13

OPTSTK

TITAN     

30-Mar-06

PA

700

681.25

14

OPTSTK

TITAN     

30-Mar-06

CA

720

700.70

15

OPTSTK

TITAN     

30-Mar-06

PA

720

700.70

16

OPTSTK

TITAN     

30-Mar-06

CA

740

720.20

17

OPTSTK

TITAN     

30-Mar-06

PA

740

720.20

18

OPTSTK

TITAN     

30-Mar-06

CA

760

739.65

19

OPTSTK

TITAN     

30-Mar-06

PA

760

739.65

20

OPTSTK

TITAN     

30-Mar-06

CA

780

759.10

21

OPTSTK

TITAN     

30-Mar-06

PA

780

759.10

22

OPTSTK

TITAN     

30-Mar-06

CA

800

778.60

23

OPTSTK

TITAN     

30-Mar-06

PA

800

778.60

24

OPTSTK

TITAN     

30-Mar-06

CA

820

798.05

25

OPTSTK

TITAN     

30-Mar-06

PA

820

798.05

26

OPTSTK

TITAN     

30-Mar-06

CA

840

817.50

27

OPTSTK

TITAN     

30-Mar-06

PA

840

817.50

28

OPTSTK

TITAN     

30-Mar-06

CA

860

836.95

29

OPTSTK

TITAN     

30-Mar-06

PA

860

836.95

30

OPTSTK

TITAN     

30-Mar-06

CA

880

856.45

31

OPTSTK

TITAN     

30-Mar-06

PA

880

856.45

32

OPTSTK

TITAN     

30-Mar-06

CA

900

875.90

33

OPTSTK

TITAN     

30-Mar-06

PA

900

875.90

34

OPTSTK

TITAN     

27-Apr-06

CA

620

603.40

35

OPTSTK

TITAN     

27-Apr-06

PA

620

603.40

36

OPTSTK

TITAN     

27-Apr-06

CA

640

622.85

37

OPTSTK

TITAN     

27-Apr-06

PA

640

622.85

38

OPTSTK

TITAN     

27-Apr-06

CA

660

642.35

39

OPTSTK

TITAN     

27-Apr-06

PA

660

642.35

40

OPTSTK

TITAN     

27-Apr-06

CA

680

661.80

41

OPTSTK

TITAN     

27-Apr-06

PA

680

661.80

42

OPTSTK

TITAN     

27-Apr-06

CA

700

681.25

43

OPTSTK

TITAN     

27-Apr-06

PA

700

681.25

44

OPTSTK

TITAN     

27-Apr-06

CA

720

700.70

45

OPTSTK

TITAN     

27-Apr-06

PA

720

700.70

46

OPTSTK

TITAN     

27-Apr-06

CA

740

720.20

47

OPTSTK

TITAN     

27-Apr-06

PA

740

720.20

48

OPTSTK

TITAN     

27-Apr-06

CA

760

739.65

49

OPTSTK

TITAN     

27-Apr-06

PA

760

739.65

50

OPTSTK

TITAN     

27-Apr-06

CA

780

759.10

51

OPTSTK

TITAN     

27-Apr-06

PA

780

759.10

52

OPTSTK

TITAN     

27-Apr-06

CA

800

778.60

53

OPTSTK

TITAN     

27-Apr-06

PA

800

778.60

54

OPTSTK

TITAN     

27-Apr-06

CA

820

798.05

55

OPTSTK

TITAN     

27-Apr-06

PA

820

798.05

56

OPTSTK

TITAN     

27-Apr-06

CA

840

817.50

57

OPTSTK

TITAN     

27-Apr-06

PA

840

817.50

58

OPTSTK

TITAN     

27-Apr-06

CA

860

836.95

59

OPTSTK

TITAN     

27-Apr-06

PA

860

836.95

60

OPTSTK

TITAN     

27-Apr-06

CA

880

856.45

61

OPTSTK

TITAN     

27-Apr-06

PA

880

856.45

62

OPTSTK

TITAN

25-May-06

CA

720

700.70

63

OPTSTK

TITAN

25-May-06

PA

720

700.70

64

OPTSTK

TITAN

25-May-06

CA

740

720.20

65

OPTSTK

TITAN

25-May-06

PA

740

720.20

66

OPTSTK

TITAN

25-May-06

CA

760

739.65

67

OPTSTK

TITAN

25-May-06

PA

760

739.65

68

OPTSTK

TITAN

25-May-06

CA

780

759.10

69

OPTSTK

TITAN

25-May-06

PA

780

759.10

70

OPTSTK

TITAN

25-May-06

CA

800

778.60

71

OPTSTK

TITAN

25-May-06

PA

800

778.60

72

OPTSTK

TITAN

25-May-06

CA

820

798.05

73

OPTSTK

TITAN

25-May-06

PA

820

798.05

74

OPTSTK

TITAN

25-May-06

CA

840

817.50

75

OPTSTK

TITAN

25-May-06

PA

840

817.50

76

OPTSTK

TITAN

25-May-06

CA

860

836.95

77

OPTSTK

TITAN

25-May-06

PA

860

836.95