DEMERGER OF PIRAMAL ENTERPRISES LIMITED: IMPLICATIONS FOR YOUR F&O POSITIONS. 

Piramal Enterprises Limited has fixed a Record Date of September 01, 2022 for the purpose of issuance and allotment of 4 equity share of Rs. 10/- each of Piramal Pharma for every 1 equity shares of Rs. 2 /-each to shareholders of Piramal Enterprises Limited. The ex-date being August 30, 2022.  

1. What will happen to F&O open positions in Piramal Enterprises Limited?  

- All existing contracts with expiry dates September 29, 2022, October 27, 2022 and  November 24, 2022, will expire on August 29, 2022.  

 - You can mark your existing positions for physical delivery before 11 am or square off on ICICIdirect on 29 August 2022. If neither of the above actions are completed on 29 August, ICICIdirect systems will attempt to close the buy/sell Options position at 12:30 pm & buy/sell Futures position at 2:30 pm.  

2. When will the new contracts be available for trade?  

- Derivatives contracts on Piramal Enterprises shall be introduced again with expiry September 29, 2022, October 27, 2022 and November 24, 2022 from August 30, 2022 being the ex-date of the underlying.  

3. What will be the new Strike price & lot size for Options?  

- The list of option strikes from which specific strike prices would be made available for trading on August 30, 2022 shall be intimated to the trading members through a separate circular to be issued on August 29, 2022 aftermarket hours.  

4. How do I mark my Piramal Enterprises position for physical delivery on ICICIdirect and when do I have to have funds or shares?   

- In case you intend to avail physical settlement of Future and Options positions in September month contract, please give instruction on mobile number_9321410550. The intent will be taken only on 29th September 2022 before cut off time i.e., 11.a.m. For further queries please refer to the FAQs.  

- Suppose you are long on the stock with long futures, short put or buy call and to take physical delivery, you need to allocate equivalent cash of the contract value in your F&O fund allocation.   

-  Suppose you have short futures, long puts or short call and you intend to give delivery of shares, you need to ensure that you have sufficient free shares of Piramal Enterprises in your demat account.  

5. What if for some reason like lack of liquidity my position couldn’t be squared off for September, October & November expiry contracts on 29 September2022?  

-  If for some reason like lack of liquidity etc. your position couldn’t be squared off, then an In-the-money (ITM) option contract will be assigned to you.   

-  If you are holding long call options and it expires In-the-money (ITM), the contract will be assigned to you and if you don’t have funds to buy the shares, ICICIdirect will be forced to buy the stock on your behalf and sell the next day. The equivalent profit or loss along with statutory charges will be passed to your account.   

-   If you are holding long put options and the contract expires in-the-money (ITM), you will have to give delivery of shares. In case the shares are not there in your demat account, it will go for auction. ICICIdirect will attempt to arrange stock in a Stock lending and borrowing scheme (SLBM) and give delivery of shares on your behalf and then sell. The loss on such a transaction (difference between buy or sell) will be debited to your account. If any profit, it will be credited to your account.   

6. What is the closing price of Piramal Enterprises on 29 August 2022?  

- Piramal Enterprises weighted average price from 3 pm to 3.30 pm on 29 August 2022.  

7. What if the position is squared off before 3:30 pm?  

- Client will receive MTM profit or loss on T+1 day.  

8. What if position is not squared off on 29 August 2022?  

- Physical settlement will take place & according to your FNO open positions, delivery shares pay in or payout will happen.  

9. When will physical settlement pay in & payout happen?  

- On T+2 days.  

10. When will the blocked margins be released?  

- On T+1 day.  

11. What is the margin required for revised Piramal Enterprises contracts?  

- Margin will be as per the exchange rule of SPAN plus Exposure.  

We urge you to monitor your F&O positions in Piramal Enterprises and take timely action.   

Disclaimer: - ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No: 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.