Query on Adjustment of Open FnO Contracts Post-Bonus Date

I have a query regarding Circular Ref. No: 127/2024, specifically about the adjustments on open futures and options (FnO) contracts following the bonus date for Reliance

I will share my buying insights

  • Purchased Contract: 2700 CE expiring on 31st Oct
  • Buying Price: ₹25
  • Lot Size: 250
  • Investment Used: 250×25=₹6250

After Bonus Date (28th Oct 2024):

  • Strike Price Adjusted: 1350 CE 31st Oct expiry
  • Quantity: 500
  • Buying Price: ₹25
  • Investment Used: 25×500=₹12500

It appears my investment value has effectively doubled after the bonus adjustment. Could you provide insight into this change in margin requirements and how it impacts the initial investment post-adjustment?

@Dhan_Cares / @Dhan : Please help in justifying how come investment value is increased

Hi @shikhar, Welcome to MadeForTrade!

Today is the record date for the Reliance Industries bonus, and the average price for your open position will be updated by the end of the day. For more details you may refer here and refer FAQ .