Comment on Policy on settlement of compulsory delivery derivative contracts

Hi,

Request your feedback on following queries.
If I hold call option and not looking for settlement
Case 1: If my strike price is ITM. No issues of settlement. If I am right?
Case 2: If my strike price CTM(3 price next to spot prize). Any settlement will be there?
Case 3: my strike is ITM. No liquidity.Unable to sell till expiry What will be the implication of settlement. Can u pls explain in steps.
1. Either this is cash or physical stock settlement ( physical delivery of shares of lot qty to my account).?
2. What will be the implication of STT charges?
3. What if I don’t have cash to take settlement?
4. What can be done to stop settlement?
5. What issue I may face, no cash but settlement is mandated?

View the full comment thread »