Announcements

SEBI had  decided to compulsorily settle stock derivatives physically in a phased manner, starting with 46 stocks in July 2018. This has now become applicable to all the stock derivative contracts, starting October 2019.  Under this, if you hold a position in any of these contracts on the expiry date, you will have to give/take delivery of the stocks.

Accordingly, effective Friday – 22 Nov, 2019, changes applicable on trading with Upstox in Stock Derivatives for the current month (November) contract expiry and all expiries going forward is as follows:

• Clients shall not be permitted to initiate fresh position in stock options from 5 days prior to expiry of any month. Correspondingly, conversions of carry-forward stock option positions shall not be permitted.
• Delivery margins would be applicable—as per exchange norms—on all the existing long ITM (In The Money) stock option position in a staggered manner as explained below:

20% of delivery margins computed on expiry -4 days EOD (Friday)
40% of delivery margins computed on expiry -3 days EOD (Monday)
60% of delivery margins computed on expiry -2 days EOD (Tuesday)
80% of delivery margins computed on expiry -1 day EOD (Wednesday)

To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).

• Clients shall not be permitted to initiate fresh position in stock futures from 1 day prior to the expiry of any month. Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

The RMS team shall begin squaring-off all the existing open position of the expiring Futures and Options contracts from 2.30 pm onwards, a day prior to the expiry day at the prevailing market price on best-effort basis. If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and the client would be liable to pay the entire amount of the settlement.

For your reference, you could also go through the SEBI and NSE circulars on physical settlement as below:

SEBI circular: SEBI/HO/MRD/DOPI/CIR/P/2018/161

NSE circular: FAOP39824

On account of assembly elections in Maharashtra, the markets will be closed on 21st October, 2019. However, the second (evening) section of commodity trading will be open from 5:00PM – 11:30PM. For more details, see the NSE Circular, BSE circulars for Equity and Currency, and MCX circular. 

We are taking the time to better our API services. So, our API services will now be available to a closed group of users only. We will be sure to inform you when the service is available to new users like you.

There has been a  recent change in the rules related to physical settlement of equity derivatives segment.In addition to the margins applicable for the F&O segment, delivery margins shall be levied on potential in-the-money long option positions four (4) trading days prior to expiry of the derivative contract that has to be settled through delivery.

Delivery margins are applicable on in-the-money long option positions as per the following schedule:
20% of Delivery margins computed on Expiry- 4 EOD (Friday)
40% of Delivery margins computed on Expiry - 3 EOD (Monday)
60% of Delivery margins computed on Expiry - 2 EOD (Tuesday)
80% of Delivery margins computed on Expiry - 1 EOD (Wednesday)

To avoid shortages, delivery margins would be applicable from Friday morning itself, as compared to the exchange's timing of Friday EOD. The clients are advised to add funds on Friday itself before 2.30 PM to avoid any penalties imposed by the RMS team. Since margins are an upfront requirement, positions would be reduced to the extent of shortage values in case of an overall margin shortage

No fresh positions would be allowed starting Friday (Expiry-4 days) on all the option contracts with the current expiry, the underlyings of which would be settled physically. This rule applies to all further expiries as well.

As per Upstox policy and the previous circulars sent under the subject line:"Revision of settlement mechanism in Equity Derivatives segment,"  we do not permit physical settlement of equity derivatives positions.

Thus, all the open positions will be squared off by the Upstox RMS team one day prior to expiry at 2:30 p.m. and no fresh positions will be allowed after the square-off time.