IOC Dividend Adjustment in Futures Contract

[Theinvestors]

On 8nov, i buy 2 lot of IOC futures at average buy price as 103 for 2 lot of IOC future.
but 10Nov morning, the average buy price is showing on kite as 98. I agree that there is some adjustment due to dividend of rs. 5, but explanation by zerodha at following link ONLY talks abt mark-to-market, but says nothing abt ACTUAL buy price.
Now, my ACTUAL buy price is 103. Zerodh kite showing 98.
My question - Given my actual buy price is 103, if I sell at 99, will i have 4 rs loss or will i have 1 rs. profit due to some kind of adjustment? What is the real scenarios of profit n loss in this case?
this 2 links only talks abt mark-2-markt (by zerodha & by exchange). There is no clearity abt actual p n l.
https://zerodha.com/marketintel/bulletin/363737/adjustment-of-fo-contracts-of-ioc-due-to-dividend
https://nsearchives.nseindia.com/content/circulars/FAOP59189.pdf 1
please can someone clarify.
thanks

 

[timepass]

On 8nov, i buy 2 lot of IOC futures at average buy price as 103 for 2 lot of IOC future.
but 10Nov morning, the average buy price is showing on kite as 98. I agree that there is some adjustment due to dividend of rs. 5, but explanation by zerodha at following link ONLY talks abt mark-to-market, but says nothing abt ACTUAL buy price.
Now, my ACTUAL buy price is 103. Zerodh kite showing 98.
My question - Given my actual buy price is 103, if I sell at 99, will i have 4 rs loss or will i have 1 rs. profit due to some kind of adjustment? What is the real scenarios of profit n loss in this case?
this 2 links only talks abt mark-2-markt (by zerodha & by exchange). There is no clearity abt actual p n l.
https://zerodha.com/marketintel/bulletin/363737/adjustment-of-fo-contracts-of-ioc-due-to-dividend
https://nsearchives.nseindia.com/content/circulars/FAOP59189.pdf 1
please can someone clarify.
thanks

Good question. Even I would like an answer to that.

@travi , @Pradeep Narayan , members

 

[Pradeep Narayan]

Good question. Even I would like an answer to that.

@travi , @Pradeep Narayan , members

Straight forward reply - YES! you will make a 1 Re gross profit on positions.

Please read this
https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments

 

[travi]

On 8nov, i buy 2 lot of IOC futures at average buy price as 103 for 2 lot of IOC future.
but 10Nov morning, the average buy price is showing on kite as 98. I agree that there is some adjustment due to dividend of rs. 5, but explanation by zerodha at following link ONLY talks abt mark-to-market, but says nothing abt ACTUAL buy price.
Now, my ACTUAL buy price is 103. Zerodh kite showing 98.
My question - Given my actual buy price is 103, if I sell at 99, will i have 4 rs loss or will i have 1 rs. profit due to some kind of adjustment? What is the real scenarios of profit n loss in this case?
this 2 links only talks abt mark-2-markt (by zerodha & by exchange). There is no clearity abt actual p n l.
https://zerodha.com/marketintel/bulletin/363737/adjustment-of-fo-contracts-of-ioc-due-to-dividend
https://nsearchives.nseindia.com/content/circulars/FAOP59189.pdf 1
please can someone clarify.
thanks

Both entry and LTP is adjusted, so unless IOC falls or rises, both adjusted by inr.5

So 99 is INR. 1 profit

 

[Theinvestors]

thank you to both @travi , @Pradeep Narayan
happy diwali