Announcements

15th August is a Trading Holiday  on account of Independence Day and 16th August is a Settlement Holiday on account of Parsi New Year. Due to both these holidays, please note the following impact on your trades:

• -> Markets (including MCX) will be closed for trading on 15th August on account of Independence Day and will open on 16th August 
• -> Fund withdrawal requests after 8 AM on 14th August will be processed on 17th August
• -> Stocks bought on 14th will not be available for selling on 16th August but will be visible in your account
• -> Credit bill for all segments on 14th will not be available for trading or withdrawal on 16th August
• -> Standard Fund Withdrawal requests placed after 8 AM on 14th August will be processed on 17th August. However, you can place an Instant withdrawal request between 10 AM to 6 PM on 14th August to get your funds within 15 minutes. How can I withdraw funds from my Upstox account?

📅 For future trading holidays, click:

Trading Holidays 2023

📅 For future settlement holidays click:

Settlement Holidays 2023

💡Good To Know: Difference between settlement holiday and trading holiday

Settlement holidays are when markets are open but the settlement of your trades do not take place as per the usual T+1 cycle because either the depositaries (NSDL and CDSL) are closed or banks are closed on that day. 

Trading holidays are when markets are closed and no trading or investing takes place on this day. Settlements also do not happen on this day.

We’d like to bring to your notice that the NSE has changed the expiry day for MIDCPNIFTY F&O contracts from Wednesday to Monday, effective from 17th August 2023. Existing contracts with a Wednesday expiry date will be revised to Monday on 16th August 2023, end of the day.

For example:

If the expiry/maturity date of the existing contract is maturing on 23rd August 2023 (Wednesday), it will be preponed to 21st August 2023 (Monday).

The first Monday weekly expiry will be on 21st August 2023.

All the NIFTY Midcap Select F&O contracts introduced for trading on or after 21st August 2023, will be created as per the new expiry day.

Note the following changes in the expiry day of derivatives contract on MIDCPNIFTY shall be implemented for trading:

For more details, read the NSE circular here: NSE/FAOP/57538

If you have any further queries, you can ask them on our Community.

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 July 2023 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 25th July 2023.
• -> 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 July 2023 expiry F&O contracts from Wednesday, 26th July 2023 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, 25th July 2023.

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 Crude Option contracts on 17th JULY 2023 will be converted into Futures contracts. 

To avoid square-off, ensure that you maintain sufficient margin for the Future contracts before 10.00 PM today.

Reliance Industries Limited (RELIANCE) has declared to the Exchange the issuance and allotment of 1 equity share for every 1 equity share of Reliance Industries Limited held by existing shareholders.The record date for the purpose of determining shareholders who will be applicable for this is 20th July 2023.

Due to this corporate action, keep in mind the follow impact on your F&O contracts

• 1. All existing contracts in the underlying RELIANCE with expiry dates 27th July, 31 August, 29th September shall expire on 19th July 2023 and shall be physically settled as per the mechanism specified in NCL Circular no.67/2018 (Download no.NCL/CMPT/38039) dated 15th June, 2018.)
• 2. You need to maintain the full value/stock (in case of short position) of the RELIANCE position contract if you wish to take physical delivery of shares.
• 3. No fresh position will be allowed under the F&O segment in RELIANCE from 18th July 2023 
• 4. All positions in the existing futures and options contracts on the underlying RELIANCE shall cease to exist pursuant to the final settlement on 19th July 2023
• 5. RELIANCE positions with insufficient fund value or stock (in case of short position) will be squared off anytime after 10 AM on 19th July 2023 on a best effort basis
• 6. Collateral Margins (Margin Pledge) on Reliance Ltd. will be subject to a 50% haircut value from 14th July  2023, onwards
• 7. All MTF positions in Reliance Ltd will be either squared off or converted to delivery, based on the availability of funds on 19th July 2023
  

You can also refer to the circular here: NSE/FAOP/57525