Announcements

It is mandatory to have your PAN linked to your Aadhaar before 20th September 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 20th September 2021, your Upstox account will be marked as inactive. You can also read the full Exchange circular here: https://bit.ly/3yU9v8i

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!

🔹 Up to 5X margins on Intraday and CO Orders in Equity  

🔹 Leverage NOT available for Intraday and CO Orders in F&O, Commodity & Currency (i.e. 1X margins)

We are conducting a scheduled upgrade & maintenance activity on 28th August 2021 from 9.30 AM to 12.30 PM to ensure that you can enjoy a seamless trading and investing experience on Upstox. During this time you may not be able to login to the Upstox mobile app & desktop platform. Thank you for your patience.

The fourth phase of Peak Margins as prescribed by SEBI here will be effective from 1st September 2021. This means in order to offer Intraday trading across various products brokers need to collect a minimum of 100% of funds on the prescribed limit from 1st September 2021.

What are Peak Margins?
Before 1st December 2020, brokers could provide higher leverages by offering products like Intraday (MIS), Cover Order (CO), and Bracket Order (OCO) as margins would only be applicable in case a position is carried forward.

However, in the interest of the market and to bring in more stability, SEBI mandated all brokers to collect minimum funds from customers even for the Intraday positions. This means traders can take Intraday positions only after fulfilling this minimum margin requirement. SEBI also asked clearing members and clearing corporations to monitor brokers’ margin activities from 1st December 2020.

The changes as per these guidelines are being rolled out in phases.

In the previous phase which was effective from 1st June 2021, brokers had to collect a minimum of 75% funds on the prescribed limit from customers. And now in the next phase which will be effective from 1st September 2021, brokers have to collect a minimum of 100% funds on the prescribed limit from customers.

You can read more about it here.

How does this affect intraday traders?
As per SEBI guidelines, brokers have to collect a minimum of 100% funds on the prescribed limit on Intraday trading offered across various products. Margin applicable on the intraday positions would be:

• Equity: 100% on applicable VAR + ELM OR 20% of trade value 
• Futures and Option (writing): 100% on SPAN + Exposure margin

What are the revised margins as per this day?
Revised margins from 1st September 2021 are:

• Up to 5X margins on Intraday and CO Orders in Equity 
• Leverage NOT available for Intraday and CO Orders in F&O, Commodity & Currency (i.e. 1X margins)

Stay tuned for important updates from Upstox!

All open position(s) in the F&O segment with a 26-08-2021 expiry date (except those who have opted for physical settlement) should be squared off  before 12:00 PM on 26th August 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 26th August 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 26th August 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 26th August 2021.

Feel free to refer to the exchange’ circular  here.