Announcements

On Saturday, 2 March 2024, NSE & BSE will host a special LIVE trading session in the Equity and Derivative (F&O) segments.

Why is this session happening?

This session is happening because SEBI wants to ensure that market intermediaries such as Exchanges, Clearing Houses, and Depository Organizations can smoothly switch to a backup plan - the Disaster Recovery (DR) site in case of an unexpected disaster.  It aims to ensure that trading activities continue without interruptions and that all data remains secure.

What are the timings of this LIVE session ?

The day will be divided into two trading sessions:

Live Trading from the Primary Site (Trading Session 1):

Live Trading from the DR Site (Trading Session 2):

What to keep in mind on this day?

• 🔸 Any open orders not executed by the end of the first session will be cancelled and won’t be carried forward to the next session
• 🔸 Securities (including stocks having F&O Contracts) will have upper and lower circuit limits set at 5%
• 🔸 Stocks with existing 2% limits will maintain that limit
• 🔸 All futures contracts will operate within a 5% range
• 🔸 Typically, stocks in the F&O segment and futures contracts enjoy flexible price bands in a regular trading session. This means that if the circuit limit is reached, it is usually relaxed to facilitate continuous trading. However, this standard practice won't apply during this special session.
• 🔸 Only delivery trades would be allowed (No Intraday).
• 🔸 No fresh position would be permitted under MTF, only square off trades would be permitted.
• 🔸 Considering 2 March is a settlement holiday, any credits from the F&O segment and intraday profits from 1 March won't be available for trading during this session
• 🔸 Sale proceeds from BTST sell transactions on 2 March will be settled on Monday, 4 March. Credits will be available for trading on Tuesday, 5 March
• 🔸 SIP orders on Upstox won't be executed during the Special Trading Session. Scheduled SIP orders on 2 March will be processed on the next trading day i.e. 4 March
• 🔸 Brokerage charges will be applicable as usual
• 🔸 Fund withdrawals will not be processed on this day  

For more information, check out the circulars here (NSE, BSE)

This is the first time that the Exchanges are switching trading from their primary site to the disaster recovery (DR) site during a LIVE trading session. As per a notification from the Exchange (Refer to point 6), during this switch, there could be a possibility of executed trades getting cancelled by the Exchange. Details of such cancelled trades will be notified to you by EOD.

As per an Exchange circular, the revised expiry day for BANKNIFTY Monthly and Quarterly Futures & Options (F&O) contracts will now be on Wednesday (previously the last Thursday) of every month.

• 🔹 If Wednesday is a trading holiday, the expiry will occur on the previous trading day
• 🔹 The weekly expiry for BANKNIFTY has already been set to Wednesday of every week
• 🔹 These changes will take effect from 1 March 2024
• 🔹 There will be no changes to the expiry dates of the January and February month contracts

Refer to the table for more information:

You can also refer to the Exchange circular here: NSE/FAOP/60011

As we expand, we aim to offer more products and services, ensuring you have everything you need to Invest Right. We're currently restructuring to support this growth.

Although 'Upstox' may be the name you're familiar with, our legal entity is 'RKSV Securities India Pvt. Ltd.' To streamline our structure and facilitate further growth, we're transitioning our Broking and Depository Participant (DP) operations to 'Upstox Securities Pvt. Ltd.,' a subsidiary fully owned by RKSV Securities India Pvt. Ltd.

What has changed?

• 🔹 Our Equity Trading Business (including Equity, Mutual Funds, Futures & Options, Currency) will be conducted under Upstox Securities Pvt. Ltd.
• 🔹 Our Commodity Trading Business (MCX) will continue under RKSV Commodities India Pvt. Ltd.

What does this mean for you?

Not much really, everything pretty much stays the same as before! 

• 🔸 Your Client ID, Account Number, Investments etc. everything remains the same and you can continue to invest and trade just like before. 

• 🔸 If you've previously enabled DDPI or POA, please re-enable DDPI by following the steps here: How do I activate DDPI on Upstox?

New Banking Details

To add funds via NEFT, RTGS, IMPS for Equity, F&O, and Currency trading, please use these banking details from 8 March, 2024:

Bank Name: HDFC Bank

Account Name: Upstox Securities Pvt Ltd - USCNB A/C

Account Number: 57500001411011

Account Type: Current Account

IFSC Code: HDFC0000060

What next?

These changes will take effect starting 8 March, 2024. If you do not agree to these changes, please consult the attached official policy document. By using our services from 8 March, 2024, onwards, you consent to the updated policies.

Thank you for your continued trust and partnership with us. For more details click here: Business Transfer to Subsidiary Intimation

As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

What is Physical Settlement?

In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

Examples of Physical Settlement:

Futures

Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

Options

Long - 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.

If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

Long - 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

Please note: -- 

• 🔹 Short ITM PE options, treatment would be similar to Long ITM CE options.
  Free ledger balance equal to the contract value to be maintained.
• 🔹 Short ITM CE options, treatment would be similar to Long ITM PE options.
  Holdings shares of lot quantity positioned to be available in Demat account.

What is the process for Physical Settlement on Upstox?

To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

• 🔸 To provide your consent for physical settlement of open Stock F&O contract(s) with February 2024 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 27 February 2024.
• 🔸 Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.
• 🔸 Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current February 2024 expiry F&O contracts from Wednesday, 28 February 2024 onwards. 
• 🔸 Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

What other impact could this have on your positions?

Your position will automatically be squared-off on expiry day at 12:00 PM in case:

• 🔹 You have not provided your consent for physical settlement
• 🔹 You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.
• 🔹 In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

What else to keep in mind?

Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

• 🔸 10% of delivery margins computed on expiry -4 days EOD (Friday)
• 🔸 25% of delivery margins computed on expiry -3 days EOD (Monday)
• 🔸 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*
• 🔸 70% 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).
• 🔹 If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

* If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 27 February 2024.

In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

Brokerage in Physical settlement:

Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

And that’s all. Keep a watchful eye on this page for more updates from Upstox!

All ITM Natural Gas Option contracts on 22nd February 2024 will be converted into Future contracts.

To avoid square-off, please maintain sufficient margin before 10.00 PM today.