The methodology to be followed for adjustment Bonus, Stock Splits and Consolidations

Strike Price: The new strike price shall be arrived at by dividing the old strike price by the adjustment factor as under

Market Lot / Multiplier: The new market lot / multiplier shall be arrived at by multiplying the old market lot by the adjustment factor as under

Position: The new position shall be arrived at by multiplying the old position by the adjustment factor as under

Bonus Issues

Ratio – A : B

Adjustment factor : (A+B)/B

Stock Splits and Consolidations Ratio - A : B

Adjustment factor : A/B

The above methodology may result in fractions due to the corporate action e.g. a bonus ratio of 3:7. With a view to minimising fraction settlements, the following methodology is adopted.

Compute value of the position before adjustment

Compute value of the position taking into account the exact adjustment factor

Carry out rounding off for the Strike Price and Market Lot

Compute value of the position based on the revised strike price and market lot

The difference between 1 and 4 above, if any, is decided in the manner laid down by the relevant authority by adjusting Strike Price or Market lot, so that no forced closure of open position is mandated.

The methodology to be followed for adjustment Bonus, Stock Splits and Consolidations

Strike Price:The new strike price shall be arrived at by dividing the old strike price by the adjustment factor as underMarket Lot / Multiplier: The new market lot / multiplier shall be arrived at by multiplying the old market lot by the adjustment factor as underPosition: The new position shall be arrived at by multiplying the old position by the adjustment factor as underBonus Issues

Ratio – A : B

Adjustment factor : (A+B)/B

Stock Splits and Consolidations Ratio - A : B

Adjustment factor : A/B

The above methodology may result in fractions due to the corporate action e.g. a bonus ratio of 3:7. With a view to minimising fraction settlements, the following methodology is adopted.

Compute value of the position before adjustment

Compute value of the position taking into account the exact adjustment factor

Carry out rounding off for the Strike Price and Market Lot

Compute value of the position based on the revised strike price and market lot

The difference between 1 and 4 above, if any, is decided in the manner laid down by the relevant authority by adjusting Strike Price or Market lot, so that no forced closure of open position is mandated.