Announcements

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.

There have been some modifications in the contract specifications for copper futures contract. These are as follows:

1. Change from ‘both options’ to ‘compulsory delivery.’
2. There will now be a uniform trading and delivery lot size of 2500 kg (2.5 MT). 

For details, please refer to the MCX circular, dated 12th June, 2019. 

Due to the upcoming election results certain leverage restrictions will be applied on your Upstox account from 23rd - 24th May, 2019.

Carry Forward (Delivery) margins for F&O will be increased to:
- 1.1x for Index Derivatives of applicable exchange margins

- 1.3x for Stock Derivatives of applicable exchange margins

- MTM Square OFF % will be revised to 70% instead of 80% for ALL non-PP clients.

- On all days - BO / CO for OPTIONS (F&O + CDS) will be Disabled/blocked.

- "MARKET" Order for Stock-Options will be Disabled.

Intraday (MIS) product for OPTIONS (F&O + CDS) will be disabled/blocked. Thus all leveraged products (MIS /CO / BO) will be Blocked.

Due to the upcoming election results certain leverage restrictions will be applied on your Upstox account from the period of May 17th  – 24th, 2019.

From May 17th – May 24th, 2019

Carry Forward (Delivery) margins for F&O will be increased to:

- 1.1x for Index Derivatives of applicable exchange margins

- 1.3x for Stock Derivatives of applicable exchange margins

From May 20th – May 24th, 2019

- MTM square-off percentage will be revised to 70% instead of the current 80% for all clients

- Cover Order (CO) and Bracket Order (BO) for Options (F&O and Currency) will be disabled

- Order type ‘Market’ will be disabled for stock options under all product types.

- Carry Forward (Delivery) Margins for Currency Derivatives  will be increased to 1.2x of applicable exchange margins for all contracts (F&O)

Between May 20th – May 22nd, 2019 (Applicable for Cash Segment)

Intraday products (MIS/CO/OCO) will be allowed on basket of F&O underlying stocks only. The applicable leverages would be;

- MIS (Intraday) - 5X for all Clients

CO and BO will be:

- 10x for Priority clients

- 8x for all other clients

On May 23rd and May 24th, 2019

All the leveraged products (Intraday/CO/OCO) will be disabled. Leverages restoration on Friday will be as per market behaviour, at the discretion of the Risk management team.

Important Note:

You may need to fund your account from time-to-time, so that your balance is always above the desired margin obligation (including the additional margins charged by Upstox as per above %). Failure to do so will result in your position(s) being squared-off as a risk containment measure.