IMPLICATIONS OF DEMERGER IN HINDUSTAN UNILEVER LIMITED ON FUTURES AND OPTIONS

Hindustan Unilever Limited is undergoing a corporate demerger, with the record date set as December 05, 2025. Hindustan Unilever Limited has announced a demerger of its ice-cream business. Under this arrangement, Hindustan Unilever (HUL) is demerging its ice-cream business into a new, independent company called Kwality Wall's (India) Ltd (KWIL). Existing shareholders of HUL are set to receive KWIL shares on a 1:1 basis.

As a result of this corporate action, existing F&O contracts on Hindustan Unilever will be impacted. Here is everything you need to know about expiry changes, contract reintroduction, margin requirements, settlement timelines, and how to manage your open positions on ICICI Direct.

Expiry of Existing Contracts:

All existing Hindustan Unilever F&O contracts with expiry dates of December 30, 2025, January 27, 2026 and February 24, 2026, will get expire early on December 04, 2025. These contracts will be physically settled if not squared off before market hours on December 04, 2025.

In case positions are not marked for delivery, ICICI Direct systems will attempt closure automatically by:

a. 12:30 pm for all options

b. 2:30 pm for all futures

Introduction of New Contracts:

From December 04, 2025 EOD new derivatives contracts on HINDUSTAN UNILEVER will be re-introduced.  These contracts will have expiry dates of December 30, 2025, January 27, 2026 and February 24, 2026. 

Option Strikes Availability:

On December 05, 2025, the range of option strikes available for trading will be based on the price discovered during the Special Pre-Open Session (SPOS) of the capital market segment.

Impact of Hindustan Unilever demerger on open F&O positions  

For clients holding Hindustan Unilever   F&O contracts expiring on December 30, 2025, January 27, 2026 and February 24, 2026, please note:

a. These contracts will now expire early on December 04, 2025.

b. If not closed before market hours on December 04, they will be liable for physical settlement.

c. You can square off existing positions on ICICI Direct on December 04, 2025.

d. If you do not act, ICICI Direct systems will attempt to automatically close positions by:

i. 12:30 pm for all options

ii. 2:30 pm for all futures 

e. Automatic closure will not apply if you have already marked the position for physical delivery.

Process to mark HINDUSTAN UNILEVER   Limited position for physical on ICICI Direct

From November 28, 2025, ICICI Direct will enable a new link called “Choose Delivery” on the Open Positions page. Clients must exercise this option by 11:00 am on December 04, 2025, if they wish to mark their Hindustan Unilever   contracts for physical settlement.

a. If you are long (long futures, short puts, or long calls):

Allocate equivalent cash of the contract value in your F&O fund allocation.

b. If you are short (short futures, long puts, or short calls):

Ensure sufficient free shares of Hindustan Unilever are available in your demat account for delivery.

Process to opt out of physical delivery of shares on F&O open positions

Clients who do not wish to take or give physical delivery must ensure that their open Hindustan Unilever   F&O positions are squared off on December 04, 2025.

Margins requirement for HINDUSTAN UNILEVER   contracts for long options:

If Positions Cannot Be Squared Off on December 04, 2025

In the event that open positions cannot be squared off due to lack of liquidity, any in-the-money (ITM) option contracts will be assigned:

a. Long call options expiring ITM: The contract will be assigned, and if adequate funds are not available, delivery will be received from the exchange and liquidated on the following day. The corresponding profit or loss, along with statutory charges, will be passed to the client’s account.

b. Long put options expiring ITM: Clients will be required to deliver shares. If sufficient shares are not available in the demat account, the contract will move to auction. Any resulting loss will be debited, and any profit credited, to the client’s account.

Final Settlement Price & Timelines

a. The final settlement price of Hindustan Unilever price will be based on the last half-hour weighted average price on December 04, 2025.

b. Pay-in/Pay-out of MTM settlement: December 05, 2025 (T+1).

c. Physical settlement: December 08, 2025 (T+2).

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