Announcements

Effective 12th April 2021, Upstox will pass on any Exchange-levied penalties arising out of a margin shortfall to clients.

What does this mean?
As you are aware, in order to comply with the Exchange and regulatory requirements, we are required to collect upfront margin from all clients. As a result, clients with insufficient margins will not be able to place an order with us upfront. 

However, there could be instances when margin requirements go up after clients enter into a trade or take any actions on their current Open positions. In such instances, clients are required to add sufficient funds to their Trading account to fulfil the resulting margin shortfall (if any).

If sufficient funds are not added and it leads to a margin shortfall on the trading day (T day), then the margin penalty levied by the Exchange would be passed on to such clients (this will reflect in the client’s ledger). If the shortfall continues on T+1 day, subsequent action as per the Upstox risk policy would also be applicable.

What are the few instances when margin requirements could go up, that clients need to be aware about?

Here are few examples when margin requirements could move up:

1. A leg of a hedged position squared off by client or a leg of hedged position expiring leading to an increase in margin requirement.
2. While the margin rate remains the same, an increase in price leads to an increase in margin requirements.
3.  A change in the initial margin rates due to high volatility in any stock or scrip leading to an increase in margin requirement. 

What should you do to avoid margin shortfall penalties?

1. Keep track of the margin requirements. You can view any shortfall in your funds from the Upstox mobile app or web platform. You can view the shortfall on the ‘Funds’ screen under the ‘Available to Trade’. If the amount here is negative, then you are in a shortfall. 
2. In case of a shortfall, please add funds to your account immediately. You can add funds instantly on Upstox via UPI/NEFT/RTGS/IMPS or by using Smart Transfer.

We’ve got an important update this week.

Thursday 1st April 2021 is a settlement holiday on account of the New Financial Year. Due to this, all Equity Delivery orders placed on 31st March & 1st April 2021 will reflect in your Demat account on Tuesday 6th April 2021.

Friday 2nd April 2021 is a trading holiday because of Good Friday. This means markets will remain closed and no trading and investing will happen on this day.

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) are closed or banks are closed on that day.

What’s a trading holiday?
Trading holidays are when markets are closed and no trading or investing takes place on this day. Settlements also do not happen on this day.

What will be the impact of the settlement holiday on 1st April 2021 and trading holiday on 2nd April 2021?
On account of the holidays on 1st and 2nd April 2021 kindly note the following impact:

1. All trades placed on 31st March and 1st April in the Equity segment will be settled on Tuesday, 6th April
2. All trades placed on 31st March in the Derivative segment will be settled on 5th April
3. All shares bought on 31st March will be visible under T1 holdings on 1st  April but you will only be able to sell them on 5th April.
4. The credit bill amount for all segments on 31st March will not be available for trading or withdrawal purposes till 5th April 2021 because this amount will be blocked to the settlement holiday.
5. All fund withdrawal requests placed on 2nd April will be processed on Monday, 5th April 2021.

You can also check a list of future settlement holidays here and trading holidays here.

If you have any queries, you can raise a ticket on the Upstox mobile or desktop platforms. 

We are conducting a scheduled upgrade & maintenance activity on 27th Mar'21, from 9 AM to 2 PM and 4 PM to 8 PM to ensure that you can enjoy a seamless trading experience on Upstox. During this time you may not be able to login to the Upstox Mobile & Desktop App or access some of our core services. Thank you for your patience & cooperation.

On the occasion of Holi, markets will be closed on Monday, 29th March 2021. Trading will resume on Tuesday, 30th March 2021.

MCX will be closed on Monday, 29th March 2021 for the morning session. The second session (5 PM to 11:30 PM) will function as usual.

Please note: All fund withdrawal requests placed on Monday will be processed on Tuesday, 30th March 2021.

All open position(s) in the F&O segment with a 25-03-2021 expiry date (except those who have opted for physical settlement) should be squared off  before 12:00 PM on 25th March 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 25th March 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 25th March 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 25th March 2021.

Feel free to refer to the exchange’ circular  here.