Announcements

We hope you’re enjoying trading on Upstox and are making the most of available margins and Cover Orders.

While we’ve loved offering these to you, we noticed that sometimes you do not exit, square off or convert intraday positions to delivery by the end of the trading day. So, in your best interests, we need to square them off on your behalf within a short time frame at live market prices prevailing at that time, which may or may not match your desired price.

While we’re happy to do this for you for a small fee of ₹50 (plus 18% GST) per order, we encourage you to take trades in your hands and square-off your own trades at the time and prices you deem fit. This would help us maintain a systematic order flow, preventing lakhs of orders from being triggered consecutively and would also help you save on square-off charges!

What does this mean?
When you have open intraday positions in any segment, you’re expected to exit them by the end of the trading day or convert them to delivery. If you do not, then we square them off on your behalf and deduct charges for the same.  To know more about square-off watch this video: https://www.youtube.com/watch?v=iUNDhq2Rp0M

Earlier our square-off, margin square-off and call and trade charges for Intraday Equity, F&O, Commodity and Currency segments were ₹20 (plus 18% GST) per order. However, from 7th July 2021, these charges would be increased to ₹50 (plus 18% GST) per order.

What can you do to avoid these charges?
To avoid these charges, you can square off the intraday positions yourself anytime before 3:00 PM for Equity and F&O; before 4:30 PM for Currency Derivatives and 10:00 PM for the Commodities segment. These timings are subject to change and we will notify you with the relevant changes.

The Welspun India Limited buy-back offer of ₹120 per share has gone live on 22nd June 2021 and you can apply for it before 5th July 2021.

Read on to know what this means and how you can apply for it quickly and easily -

What is a buy-back and why should you opt for it?
It’s a corporate action where a company offers to buy-back its shares from the existing shareholders usually at a higher price than the market price. To learn more about a buy-back, watch our easy-to-understand video by clicking here.

What does this offer mean for Welspun India Limited shareholders?
Existing Welspun India Limited shareholders holding Welspun India Limited shares as on 26th May 2021 (which is the record date) can offer to sell their shares back to Welspun India Limited for ₹120 per share by applying to their buy-back offer.

How to apply for a buy-back?
Just follow these steps: 

1. Login into keystone.upstox.com with your client code and back-office password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Takeover” from the drop-down
4. Click on “Apply” and enter the quantity
5. Submit the request

Note: Non-POA holders will need to enter a valid pin to authenticate the buy-back via EDIS to proceed.

When can you apply?
You can apply for this buy-back offer on or before 5th July 2021.

What to keep in mind while applying?

1. You can only apply for this buy-back if you hold shares of Welspun India Limited  in your Demat account as on 26th May 2021.
2. You shouldn’t sell these shares on or before 5th July 2021 if you’re interested to take part in the buy-back offer.
3. After applying and offering your shares up for a buy-back, you cannot sell them in the market and modify or cancel your original bid.
4. You can only sell these shares in the market If the company cancels the buy-back and you receive your shares back from the company.
5. You will receive the buy-back amount for the shares from Welspun India Limited / Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
6. A total of 1,66,66,667 shares will be accepted by Welspun India Limited for the buyback and the remaining shares not accepted by Welspun India Limited will be returned back to shareholders in their Demat account. The percentage of shares accepted will be decided based on the number of retail investors who have applied for the buy-back. 

You can read the Exchange circular here.

That’s all about the Welspun India Limited buy-back, stay tuned for more buy-back updates from Upstox! 

As per the Exchange circular, the size of Nifty contracts is being revised from 75 to 50 per lot and here’s what you need to know.

What’s the revision:

1. July 2021 expiry contracts will be revised for market lots
2. All subsequent contracts (i.e. July 2021 monthly expiry and beyond) will have revised market lots
3. All contracts after the July monthly expiry will have a revised lot size of 50
4.The August weekly expiry contracts and all contracts after it will have a revised market lot size of 50
5. All existing NIFTY long term options contracts, with an expiry greater than 3 months, will have a lot size revised from 75 to 50. This is applicable after the expiry of June 2021 contracts (i.e. 25th June 2021)

What it means for you:
To understand this revision better, here’s an example.

Consider that you have position in Nifty beyond the July monthly expiry, In this case, before the 24th of June, you will have to do one of the following:

1. Convert the position into multiples of 50
2. Have position(s) in multiples of 50 - here your current 2 lots (75 x  2 = 150) will then become 3 lots (50 x 3 = 150)
3. Square off the existing position, if it is not in multiples of 50

Remember, if your remaining quantity is not in multiples of 50, you will not be able to square off your position until expiry. So, if you hold the position of 1 lot (quantity - 75) after 25th June 2021, you will be able to only square off 1 lot (quantity- 50) at that time. Thus your remaining quantity = 25, can only be expired and not squared off as per your wish at any point in time.

Kindly plan your trades accordingly. You can also get more details by reading the circular here: https://bit.ly/3uHXOiY

Looking for more information? Learn more about lot sizes and what they mean here.

All open position(s) in the F&O segment with a 24-06-2021 expiry date (except those who have opted for physical settlement) should be squared off  before 12:00 PM on 24th June 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 require consent in order to physically settle your transactions.

However, for all users who have not submitted consent and who do not square-off their positions before 12:00 PM on 24th June 2021, then here’s what will happen:

A) Auto-square off by Upstox:

If users cannot square off your positions before the cut-off time (i.e., 12 PM on 24th June 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 -

1. 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.
2. 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 all open F&O trades before 12 PM on 24th June 2021.

Feel free to refer to the exchange’ circular  here.

It is mandatory to have your PAN linked to your Aadhaar before 30th June 2021, as per Section 139 AA of the Income Tax Act 1961.

Doing this also ensures the smooth functioning of your account.

What happens if you don’t link these two documents?
In case you fail to link your PAN to your Aadhaar card before 30th June 2021, your Upstox account will be marked as inactive. You can also read the full Exchange circular here: https://bit.ly/3c80hwE

Additionally, while you can file your taxes without linking these two documents, the Income Tax Department does not process returns unless your Aadhaar and PAN are linked.

Ensure your account doesn't turn inactive and avoid other financial inconveniences by linking your PAN to your Aadhaar card today.

To link your PAN to your Aadhaar card, visit www.incometax.gov.in

Here’s are the steps you can follow- https://www.incometax.gov.in/iec/foportal/help/how-to-link-aadhaar

OR 

You can send an SMS to 567678 or 56161 in this format: 

UIDPAN<space><12 digit Aadhaar><space><10 digit PAN>

Stay tuned for more important updates from Upstox!