Announcements

All open position(s) in the F&O segment with a 27-05-2021 expiry date (except those who have opted for physical settlement) should be squared off  before 12:00 PM on 27th May 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 27th May 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 27th May 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 27th May 2021.

Feel free to refer to the exchange’ circular  here.

Tomorrow, 26th May 2021 is a settlement holiday on account of Buddha Purnima. Due to this, all Equity Delivery orders placed on 25th May and 26th May 2021 will reflect in your Demat account on Friday 28th May 2021.

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) 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 26th May 2021?
On account of the settlement holiday on 26th May 2021 kindly note the following impact on your holdings:

1. All trades placed on 25th and 26th May in the Equity segment will be settled on Friday, 28th May 2021. 
2. All trades placed on 25th May in the Derivative segment will be settled on 27th May
3. All shares bought on 25th May will be visible under T1 holdings on the 26th May but you will only be able to sell them on 27th May.
4. The credit bill amount for all segments on 25th May will not be available for trading or withdrawal purposes on 26th May 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 Mobile or Desktop app.

Happy Trading,
Team Upstox.

We are conducting a scheduled upgrade & maintenance activity on 22nd May 2021, from 9:00 AM to 1:00 PM to continue to offer you a seamless investing and trading experience on Upstox. During this time, you may not be able to log into the Upstox mobile app & desktop platform. Thank you for your patience.

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 May-2021 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 25th May 2021.
• 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 27-May-2021 expiry F&O from Wednesday 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 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 Tuesday i.e. 25th May 21 EOD.

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.

And that’s all. Keep a watchful eye on this page for more updates from Upstox!

Mr. Subhash Chander Khaneja has made an offer to buy-back up to 15,25,808  equity shares of Integrated Financial Services Ltd. at a floor price of Rs. 32.54  per equity shares through a reverse book-building process (delisting of shares). You can apply for this offer at the floor price or above it, between 19th May 2021 to 25th May 2021.

Read on to know how you can apply for this offer quickly and easily -

What is a reverse book-building process (delisting of shares)?

A company can delist its shares through a buy-back using the reverse book building process. In this process, the company captures sell orders online from shareholders at various prices, above or equal to the floor price. And once the offer window closes the buy-back price is determined. To know more about this click here.

What does this offer mean for Integrated Financial Services Ltd. shareholders?
Reverse book-building or delisting of shares gives existing shareholders a chance to offer their shares at or above the floor price, through an online bidding system. This means existing shareholders of Integrated Financial Services Ltd.  can opt to sell their shares at a price higher or equal to Rs. 32.54.

How to apply for a delisting?
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 takeover via EDIS to proceed.

When can you apply?

Apply for this before 2 PM on 25th May 2021.

What to keep in mind while applying?

• You shouldn’t sell these shares on or before 25th May 2021 if you’re interested to take part in this offer.
• After applying and offering your shares you cannot sell them in the market and modify or cancel your original bid.
• You can only sell these shares in the market If the company cancels the offer and you receive your shares back from the company.
• You will receive the offer amount for the shares from Integrated Financial Services Ltd./ Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• A total of 15,25,808  shares will be accepted by Integrated Financial Services Ltd. for the buy-back and the remaining shares not accepted by Integrated Financial Services Ltd. will be returned back to shareholders in their Demat account. 
• Integrated Financial Services Ltd. will credit the payment for the accepted shares and the unaccepted shares will be returned to the user's Demat accounts within 10 days from the date of offer closure i.e. 25th May 2021.
• The percentage of shares accepted will be decided based on the number of retail investors who have applied for the offer.

That’s all about the Integrated Financial Services Ltd. delisting, stay tuned for more updates from Upstox!