On May 12, Bank of India (₹142.26) announced an interim dividend of ₹4.65. The face value per equity share is ₹10. The dividend will lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.

The company has decided on May 29 as the record/effective date, when the stock price and all derivatives contracts on Bank of India will be adjusted appropriately.

With respect to adjustment in futures contracts, the reference rate of the relevant contract on May 27 (as May 28 is a market holiday) will be considered. Reference rate will be the mark-to-market settlement price of the relevant futures contract. So, the open positions shall be carried forward to May 29 at the daily settlement price on May 27 minus ₹4.65 – the dividend amount.

Suppose the June expiry futures closes at ₹140 on May 27, it will be revised to ₹135.35 (₹140 minus ₹4.65). Hence, the contract value will come down.

Likewise, in options, all the strike prices in the option chain of Bank of India will be subtracted by ₹4.65 from May 29. For example, the strike price of 140 and 150 will be modified to 135.35 and 145.35, respectively.

That said, the above measures are not likely to impact the overall trend of this stock. So, traders can stick to their views and are only required to note the changes in the contracts that they hold.

Published on May 16, 2026