Adjustment in VSNL Option and Future Contracts for Dividend

Videsh Sanchar Nigam Limited (VSNL - Scrip Code: 500483) has intimated the Exchange on December 14, 2001 that they have recommended 750% dividend to the shareholders of VSNL on face value of Rs.10/-.

The sub committee on corporate adjustments in its meeting held on January 4, 2002, approved the following:

Adjustments in Stock Option Contracts:

The entire dividend amount of Rs.75 would be reduced from the strike price of all the option contracts on the stock of VSNL. The revised strike price would be applicable form the ex-dividend date to be declared by the exchange.

Adjustments in Single Stock Futures Contracts:

The reference rate for the purpose of daily mark to market settlement of these contracts will be reduced by the dividend amount (Rs.75) on the ex-dividend date.

This decision is in conformity with the corporate adjustments policy of LIFFE and other leading international exchanges. Additionally, this adjustment for futures is totally consistent with the treatment for options.