Announcements

Please note, the following securities will be removed from SEBI’s list of approved securities for Margin Pledge.

As a result, you will not receive margins for F&O trading against these scrips starting Wednesday, 30 October 2024 :

NOTE: If you have pledged any of the above, after 30 October 2024, you will not receive margins pledge benefit and you will be required to fulfil the full margin requirement. If you’re unable to pay, we will have to automatically square off your positions to recover the amount by 1 November 2024.

We have attached a list of these stocks for your reference.

Please review your portfolio and make necessary adjustments to avoid any inconvenience. Thank you for your understanding and cooperation.

Iss Diwali, Kuch Naya. Start your investing journey with this 1-hour Diwali exclusive!

Muhurat Trading is a special one-hour trading and investing session held every Diwali to mark the beginning of a New Samvat Year. Investors consider Muhurat Trading auspicious and believe it will bring wealth and prosperity throughout the coming year. This year, make your Muhurat Trading even better by using our TBT Engine - features powered by Tick-by-Tick data.

Muhurat Trading is taking place on Friday, 1 November 2024 as per the following schedule:

Keep the following in mind:

- Keep your account funded in advance for a smooth trading and investing session

- MTF (Margin Trading Facility) and Margin Pledge will be unavailable on 1 Nov

- All intraday positions (including cover and bracket orders) will be squared off after 6:45 PM

- Stocks bought on Thur, 31 Oct can’t be sold on Fri,1 Nov (during Muhurat Trading hours)

- Trades executed on 31 Oct will be settled on 4 Nov

- Standard Fund Withdrawal requests placed after 8 AM on 31 Oct will be processed on 4 Nov

- Instant Fund Withdrawal facility will not be available on 1 Nov

- Credit bill of all segments of 31 Oct will be unavailable for trading on 1 Nov

- Call and Trade facility will be available between 5:45 PM to 7:00 PM

- Refer to the NSE Circular to learn more.

Here’s wishing you a truly bright and prosperous Diwali and a Happy New Year! 

The Exchange has decided to remove 1,010 scrips from their list of ‘Approved Securities for Margin Pledge’.

What does this mean?
Starting from 1 August 2024, the Exchange will gradually increase the haircut percentage on these 1,010 scrips, eventually making it 100% by 1 November 2024.
- From 1 August: 40%
- From 1 September: 60%
- From 1 October: 80%
- From 1 November: 100%

What is the impact?
Due to this, the number of approved Securities for Margin Pledge will reduce to 720 (from 1,730) by 1 November 2024. The list includes some popular names like Adani Power, YES Bank, Suzlon, Bharat Dynamics, and Paytm.

Why is this being done?
This measure is being taken to ensure that only highly liquid and stable stocks are used as collateral, reducing risks for clearing houses and the broader financial system.

How will it impact you?
As the haircut on these scrips increases gradually, you need to ensure there is sufficient cash balance in your Upstox account.

In case of a cash shortfall, you may incur a penalty, or we may have to sell your pledged stocks to cover the shortfall.

Please review the attached list of scrips and the circular, and make any necessary adjustments to your portfolio to avoid issues.

What is Margin Pledge?
Margin Pledge lets you use your stocks, ETFs, or SGBs as collateral to get extra margin for F&O trading. You don’t get the full amount as collateral. A part of the pledged value is deducted to cover risks. This is known as a haircut. For example, if your stock is worth ₹100 and the haircut is ₹15, you'll get ₹85 to trade with in F&O.

Thank you for your understanding.

List of scrips removed: Click here
Circular: Click here

RELIANCE Industries Limited has announced a bonus issue of 1:1. This means the shareholders will receive 1 additional share for every share they own. The record date for this adjustment is 28 October 2024.

Due to this corporate action, please note the following impacts on your F&O contracts:
1. Contract Adjustments: All existing RELIANCE F&O contracts will be adjusted based on a bonus adjustment factor of 2

2. Futures Contracts:
- The adjusted base price will be calculated by dividing the settlement price one day before the ex-date by the adjustment factor
- The new lot size will be 500 (previously 250)
- For example: If RELIANCE OCT Futures close at ₹3000 on 25 October 2024, the adjusted price on the ex-date will be ₹1500 (calculated as ₹3000 divided by 2). To keep the overall contract value the same, the new lot size will be 500 shares.

3. Options Contracts:
- The adjusted strike price will be calculated by dividing the old strike price by the adjustment factor
- The new lot size will also be 500 (previously 250).

4. Bonus Shares: If you hold RELIANCE shares in your DEMAT account as of 28 October 2024, you will receive bonus shares. These will be credited to your account within 15–20 days from the record date.

5. Margin Pledge: Until you get your bonus shares, the value of your margin pledge might drop because the stock price has changed. This could result in a margin shortage, so make sure to take care of any shortfalls.

You can also refer to the circular here

Thank you for your attention!

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 October 2024 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 29 October 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 October 2024 expiry F&O contracts from Wednesday, 30 October 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, 29 October 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!