Announcements

As per SEBI circular no. SEBI/HO/IMD/IMD-I DOF5/P/CIR/2021/635 dated 4th October 2021, the usage of a common fund wallet (pool account) for Stocks and Mutual Funds transactions will be discontinued.

What does this mean?
Earlier you could invest in a Mutual Fund via funds in your Upstox account. And on redemption/sale of units the funds would be credited to your Upstox account from where you could place a withdrawal request.

However, as per the above mentioned SEBI circular, while you can invest in a Mutual Fund from the Upstox platform, the funds for buying Mutual Fund units will be deducted directly from your registered bank account. And on redemption of these units they will be credited to your registered bank account.

What to keep in mind?

Due to the above change keep the following pointers in mind -

• You can continue to invest in Mutual Funds from the Upstox mobile and web platforms
• You can continue to use your Upstox account for investing and trading in Stocks, F&O, Commodity and Currency segments
•  A DP (Depository Participant) charge of ₹20 is applicable on redemption of Mutual Fund units. This will be deducted from your Upstox wallet
  and not from your bank account. So ensure you have sufficient funds to successfully redeem your units.
• To comply with this change, we will be conducting a maintenance activity on our platform from 2:30 PM on 31st March to 10:00 PM on 1st April 2022. As a result, during this time you will not be able to buy/sell any Mutual Fund units. Existing SIP transactions will remain unimpacted during this time.

To know more, refer to the circular here.

1st April 2022 is a settlement holiday on account of the new Financial Year. Due to this, all Equity trades placed on 31st March & 1st April 2022 will reflect in your account on 5th April 2022.

To help you understand what this means, we’ve simplified the details below.

What’s a settlement holiday?
Settlement holidays are when markets are open but settlement of your trades do not take place as per the usual T+2 cycle because either the depositaries (NSDL and CDSL) are closed or banks are closed on that day.

How does this holiday impact your trades?
Since the settlement date denotes the final transfer of ownership of shares and not the day you made the trade, a holiday in between causes a delay in the final transfer of shares.

What will be the impact of the settlement holiday on 1st April 2022?
On account of the settlement holiday on 1st April 2022, note the following impact:

1. All trades placed on 31st March and 1st April in the Equity segment will be settled on Tuesday, 5th April 
2. All trades placed on 31st March in the Derivative segment will be settled on 4th April
3. All shares bought on 31st March will be visible under T1 holdings on the 1st April but you will only be able to sell them on 4th April
4. The credit bill amount for all segments on 31st March will not be available for trading or withdrawal purposes on 1st April because this amount will be blocked for one day due to the settlement holiday

You can also check a list of future settlement holidays here.

If you have any queries, you can raise a ticket on the Upstox Pro Mobile or Desktop app.

As per the Exchange circular dated 9th March 2022, you need to link PAN to your Aadhaar before 31st March, 2022. If you do not link your PAN to your Aadhaar:

1. You will not be allowed to trade from 1st April, 2022 onwards and your PAN will be considered as invalid.  
2. Additionally, you will not be able to place any fresh orders, but you will only be able to exit/ square-off any open positions till 30th March 2022.

To link your PAN to your Aadhaar card, click here

Steps on linking PAN to Aadhaar: Link Aadhaar User Manual | Income Tax Department 

To know more, click here: NSE, MCX, BSE 

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:

Future

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.

Option

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 March-2022 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 29th March 2022.
• 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 March 2022 expiry F&O contracts from Wednesday, 30th March 2022 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, 29th March 2022.

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!

As per SEBI, T+1 settlement cycle is now becoming applicable on all equity stocks.

This is being implemented in a phased manner. The first list of stocks applicable for the T+1 settlement cycle went live from 25th February, 2022. The second list of stocks applicable for the T+1 settlement cycle will go live from 25th March 2022.

However, to avoid any pay-in shortage due to this change you will not be allowed to sell T1 holdings of the following stocks on 25th March 2022. But you will  still be able to see them under T1 Holdings.