Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
27 Apr 2017, 07:06 PM
“…there is no STT, but since it is exercised, on the selling side you would pay an STT of Rs 562.5* much higher than Rs 3.75 which you would have paid if sold on the exchange instead of exercising.
*Rs 562.5 = 0.125% of ( (5900+100) x 50). Rs 562.5 would mean more than 7 points of movement on Nifty options, that is how high the impact of STT could be.”
Dear Sir,
In the above extract of article, I cannot understand the calculations, as it gives me Rs. 375/- of STT instead of 562.50. Please explain.