Derivative contracts on Vedanta (₹720.95) will undergo a one-time adjustment following the company’s scheme of arrangement (demerger). As per exchange circulars, all existing contracts, including those originally expiring in May, June and July, will be compulsorily brought forward and settled on April 29, 2026.

This means traders will not be able to carry positions beyond this date. All open futures and options positions will cease to exist after final settlement and will result in physical delivery obligations.  

The final settlement price will be based on the cash market closing price of Vedanta on April 29, while mark-to-market (MTM) settlement will be completed on a T+1 basis (April 30).

Notably, the physical settlement arising from F&O positions will be netted with cash market obligations and settled through the normal market mechanism. In case a trader fails to deliver shares on the settlement day, the exchange will conduct an auction to procure the shares. If the shares are not available even in the auction, the position will be compulsorily cash-settled, usually at a penalty over the settlement price.

Post the corporate action, fresh derivative contracts will be reintroduced based on the adjusted price discovered in the special pre-open session on the ex-date (April 30).

For traders, this is crucial. Positions cannot be rolled over in the usual manner, and those holding contracts into expiry must be prepared for compulsory physical settlement. It would be prudent to either square off or ensure adequate capital and stock availability to meet delivery obligations.

Published on April 25, 2026