Announcements

Muhurat Trading is a special 1-hour trading session held every year only on Diwali to mark the beginning of a New Samvat Year. Investors consider Muhurat Trading as auspicious and believe it will bring wealth and prosperity throughout the coming year

This year, we are giving a 100% cashback on all brokerage* charged on Muhurat Trading day on Thursday, 4th Nov’21.

The Muhurat Trading day timings will be:

*Note: You will be charged brokerage on 4th Nov’21, however this will be reversed/ credited back to your trading ledger within 3 working days.


On account of the Diwali holiday on 4th and 5th Nov’21, keep the following in mind:

1. All intraday positions (including cover and bracket orders) will be squared off 15 minutes before markets close, that is at 7:00 PM.

2. Any equity securities purchased on Wednesday, 3rd Nov’21, cannot be sold on Thursday, 4th Nov’21 (during muhurat trading hours) as the settlement for both these days will take place on Tuesday, 9th Nov’21.

3. All trades placed on 3rd november in the Derivative segment will be settled on Monday, 8th Nov’21.

4. Fund withdrawals will not be processed on 4th and 5th Nov’21. If you wish to receive your funds before or on 3rd Nov’21, request you to place a withdrawal request by 8:00 AM on Wednesday, 3rd Nov’21. Any requests placed after this will be processed on Saturday, 6th Nov’21.

To know more read the NSE circulars here:
Equity, F&O, Currency Derivatives, MCX

Note: The MTM profit bill for Equity segments of Tuesday, 2nd Nov’21 will also not be available for trading or withdrawal purposes till Monday, 8th Nov’21.

Indian Railways Catering and Tourism Corporation (IRCTC) conducted a meeting with its Board of Directors on 29th September, 2021. As per this meeting, it has declared to the Exchange that a stock split in the ratio of 5:1 i.e. for every 1 share you hold of IRCTC you’ll now hold 5 shares in your Demat account.

The record date for the purpose of determining shareholders who will be applicable for this is 29th October 2021.

What is a stock split?
It’s a corporate action where a company divides its existing shares into multiple new shares in order to increase the stock's liquidity. In other words, get more people to invest in the company at its true value.

How does this corporate action impact Futures & Options Contracts?

Impact on Futures Contract: 

• The adjusted futures price shall be arrived at by dividing the old futures price by the adjustment factor. 
• The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1625

Impact on Options Contract: 

• The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.
• The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1625

The adjustment factor for the stock split of IRCTC is (5/1) = 5, since the split ratio is 5:1.

Read more on this here.

For all positions taken before 28th October 2021, you may see a slight deviation in the carried forward (c/f) average price of IRCTC due to the corporate action mentioned above.

All open position(s) in the F&O segment with a 28-10-2021 expiry date (except those who have opted for physical settlement) should be squared off before 12:00 PM on 28th October 2021 to avoid any further action by Upstox.

What does this mean?

In an 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 the physical delivery of stocks to settle the open transactions instead of settling them with cash. 

 Here’s an example – A trader bought futures for XYZ (lot size – 5000) at Rs. 100, so the contract value is Rs. 5,00,000. On expiry day, if the settlement price for XYZ is Rs. 102 and the contract has been settled on a cash basis, the trader will get a profit of Rs. 10,000. If the contract has not been settled, physical settlement takes place, which means the trader will have to pay an amount of Rs. 5,10,000 (as per settlement price of Rs.102, lot size 5000) and 5000 shares will be delivered to his Demat account as per the T+2 days settlement cycle.

As per our latest announcement mentioned here, we required your consent in order to physically settle your transactions.

However, you have not submitted your consent and if you do not square-off your positions before 12:00 PM on 28th October 2021, then here’s what will happen:

A) Auto-square off by Upstox: 

If you cannot square off your positions before the cut-off time (i.e.,12:00 PM on 28th October 2021), we will square them off at the prevailing market rates. Such square-off orders will be placed by our team as “Market Orders” and since order matching happens at the Exchange level, we shall not be liable for the rate at which they are executed.

B) Physical settlement by the Exchange:

If we cannot square off your positions due to market operational reasons, positions will be physically settled by the Exchange, and you will have to bear the costs (penalties & losses) arising from it. This means - 

• For a long open position (Long Futures, Long Call Options, Short Put Options)

Your long open position will get converted into a ‘Buy Equity Delivery,’ and you will be liable to pay the entire settlement amount as the holder of the position.

• For a short open position (Short Futures, Short Call Options, Long Put Options)

Your short position will get converted into a ‘Sell Equity Delivery,’ and you as a holder of the position will be liable to deliver the shares; else, an auction process will be applicable.

To avoid this entire process, we recommend squaring off your trades before 12:00 PM on 28th October 2021.

Feel free to refer to the exchange’ circular here.