HDFC Bank has announced a 1:1 Bonus Issue (1 Bonus share for every 1 share held) with Ex Date: 26th August 2025.

This means that shareholders holding HDFC Bank shares on the record date will receive one additional share for each share they own, effectively doubling their shareholding.

The Bonus Issue may impact below areas:

1) Equity Portfolio

2) Margin Trading Facility (MTF) Positions

3) Shares as Margin (SAM) Holdings

4) Futures & Options contracts

1)Impact on Equity Portfolio

Price Adjustment: On the record date, the share price will halve while the number of shares you hold will double. Overall portfolio value remains unchanged.

Bonus Credit: Bonus shares are expected to be credited by 29th Aug 2025. Until then, your portfolio will show a temporary ~50% drop in P&L. Once shares are credited to your demat account, your P&L will adjust to its correct value.

2) Impact on Margin Trading Facility (MTF)

Trading Restriction: Sale of MTF shares / Convert to Delivery will not be allowed from 26th Aug until bonus shares are credited.

Bonus Credit: Bonus shares will be credited to your demat account by 29th Aug and will auto-reflect in your MTF position (auto-pledged under MTF).

Resumption: From 1st Sep 2025, normal trading in MTF resumes.

Action Required: Convert to Delivery before 25th Aug if you wish to sell HDFC Bank shares during the restriction period.

Margin Advisory: Please monitor your positions and maintain sufficient margin to avoid square-off.

3) Impact on Shares as Margin (SAM)

Haircut Change: The haircut on HDFC Bank stock will increase to 55% from 22nd Aug, reducing your SAM limits on pledged HDFC Bank shares.

Bonus Credit: Bonus shares will be credited to your demat account by 29th Aug and auto-pledged under SAM.

Limits Update: Limits on bonus shares will be available from 1st Sep 2025.

Restriction: Unpledge / Spot Sell will not be allowed from 26th Aug until the bonus shares are credited. Unpledge before 25th Aug if you wish to sell HDFC Bank shares during restriction period.

Margin Advisory: Please monitor your positions and ensure adequate margin to avoid square-off.

4) Impact on Futures & Options (F&O)

Futures Contracts:

Formula = (Closing Price ÷ Adjustment Factor) × New Lot Size

Example = (Closing Price ÷ 2) × 1100

Options Contracts (Adjustments):

Note: The overall position value remains unaffected. Only parameters (strike price, lot size, premium) are adjusted. With increased lot size, partial exits are also possible.