As per SEBI’s Quarterly Fund Settlement rule, please keep the following in mind - Any funds in your Upstox account that haven't been utilised will...
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ITC Limited has declared to the Exchange the issuance and allotment of 1 equity share of ITC Hotels for every 10 equity shares of ITC Limited held by existing shareholders. The record date to determine which shareholders will be eligible for this is 6 January 2025.
Due to this corporate action, keep in mind the following impact on your F&O contracts
1. All existing contracts in the underlying ITC with expiry dates of 30 January, 27 February, and 27 March shall expire on 3 January 2025 and shall be physically settled as per the Exchange rules
2. The methodology of settlement shall be separately intimated by respective Clearing
Corporations.
3. To take physical delivery of shares for your ITC position (or to cover a short position), you need to maintain the contract's full value by the end of 2 January 2025.
4. No fresh position will be allowed under the F&O segment in ITC from 2 January 2025
5. ITC positions with insufficient fund value or stock (in case of a short position) will be squared off anytime after 10 AM on 3 January 2025 on a best-effort basis
6. Collateral Margins (Margin Pledge) on ITC will be subject to a 50% haircut value from 3 January 2025, onwards
7. All MTF positions in ITC will be either squared off or converted to delivery, based on the availability of funds post 10 AM on 3 January 2025 on a best effort basis
8. Derivatives contracts on ITC shall be introduced again (with an expiry of 30 January 2025, 27 February 2025 and 27 March 2025) from 6 January 2025 onwards
You can also refer to the circular here.
