Announcements

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!

As mentioned in the meeting held on 18th May 2021 with its Board of Directors, Aarti Industries Limited (AARTIIND) has decided to approve the Bonus issue of company shares in the ratio of 1:1, i.e one (1) Equity Share of face value of Rs. 1/- each to one (1) Equity Shares of face value of Rs. 1/- each.

The company has also fixed the Record Date as 23rd June 2021 for the purpose of determining the shareholders who will be eligible to apply for the Issue.

The Ex- date for the bonus issue is 22nd June 2021. 

 Adjustment factor
Adjustment factor for Bonus issue of A: B is defined as (A+B)/B. In the case of AARTIIND, the adjustment factor is (1+1)/1 = 2, since the Bonus issue ratio is 1:1.

Adjustments for Options Contracts:

1. Strike Price: The adjusted strike price can be calculated by multiplying the old strike price by the adjustment factor.

2. Market Lot: The adjusted market lot can be calculated by dividing the old market lot by the adjustment factor. The revised market lot would be 850.

 Adjustments for Futures Contracts:

1. Futures price: The adjusted Futures base price can be calculated by multiplying the old Futures base price by the adjustment factor.

2. Market Lot: The adjusted market lot can be calculated by dividing the old market lot by the adjustment factor. The revised market lot would be 850.

To know more, read the circular here.

Note: You may see a slight deviation in c/f average price of AARTIIND because of changes in lot size and strike price due to the said corporate action.