IMPLICATIONS OF DEMERGER IN VEDANTA LIMITED ON F&O CONTRACTS

Vedanta Limited is undergoing a corporate demerger, with the record date set as May 01, 2026. This reorganisation will separate the company’s business into Vedanta Limited, Vedanta Aluminium Metal, Vedanta Power, Vedanta Iron and Steel and Vedanta Oil and Gas.

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

Expiry of Existing Contracts:

There is no impact on April 2026 expiry for Vedanta Limited contracts. However, contracts with expiry of May and June and July, 2026 will now expire on April 29, 2026.

At ICICI Direct, clients can choose to opt for physical delivery by 11 A.M. or square off their positions on April 29,2026. However, if there is no action taken, position(s) can be auto squared-off, on best effort basis, on April 29, 2026, by:

• 12:00 P.M. for Long Options
• 2:30 P.M. for Long/Short Futures and Short Options (unless marked for physical delivery).

Introduction of New Contracts:

From April 30, 2026, new derivatives contracts on Vedanta Limited will be re-introduced.  These contracts will have expiry dates of May 26, 2026, June 30, 2026 and July 28, 2026.

Option Strikes Availability:

On April 30, 2026, 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 Vedanta Limited demerger on open F&O positions:

For clients holding Vedanta Limited F&O contracts expiring on May 26, 2026, June 30, 2026 and July 28, 2026 please note:

a. These contracts will have an Ad hoc expiry on April 29, 2026.

b. If not opted for physical delivery by 11 A.M. on April 29, 2026, position(s) can be auto squared-off, on best effort basis, by:

• 12:00 P.M. for Long Options
• 2:30 P.M. for Long/Short Futures and Short Options

c. System square-off will not apply if you have already marked the position for physical delivery.

Process to mark Vedanta Limited contracts for physical delivery on ICICI Direct:

From April 23, 2026, ICICI Direct will provide a new link called “Choose Delivery” on the Open Positions page. Clients must exercise this option by 11:00 A.M. on April 29, 2026, if they wish to mark their Vedanta Limited contracts for physical settlement.

a. If you hold a long position (Long Futures, Short PUT, or Long CALL):

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

b. If you hold a short position (Short Futures, Long PUT, or Short CALL):

Ensure sufficient free shares of Vedanta Limited 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 Vedanta Limited F&O positions are squared off on April 29, 2026.

Margins requirement for Vedanta Limited contracts for long options:

If Positions Cannot Be Squared Off on April 29, 2026

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:

• 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.
• 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

1. The final settlement price of Vedanta Limited futures will be based on the last half-hour weighted average price of cash market on April 29, 2026.
2. Pay-in of MTM settlement: April 30, 2026 (T+1).
3. Pay-out and Physical settlement:  May 03, 2026 (T+2).

References:

NSE Circular: NCL/CMPT/73864, dated April 23, 2026