On May 12, Bank of Baroda (₹268.50) announced an interim dividend of ₹8.5. The face value per equity share is ₹2. 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 June 5 as the record/effective date. On this day, the stock price and all derivatives contracts on Bank of Baroda will be adjusted appropriately.

With respect to adjustment in futures contracts, the reference rate of the relevant contract on June 4 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 June 5 at the daily settlement price on June 4 minus ₹8.5, the dividend amount.

Suppose the June expiry futures closes at ₹270 on June 4, it will be revised to ₹261.5 (₹270 minus ₹8.5). Hence, the contract value will come down.

Likewise, in options, all the strike prices in the options chain of Bank of Baroda will be subtracted by ₹8.5 from June 5. For example, the strike price of 270 and 280 will be modified to 261.5 and 271.5, 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 30, 2026