Comment on Policy on settlement of compulsory delivery derivative contracts

Faisal commented on 15 Oct 2018, 04:41 PM

1. If its ITM, it will be exercised. As a short seller, you don’t have the option to ‘not exercise’. If the stocks are not available in your DEMAT, it will result in short delivery. However, you can cover this by taking a counter futures position. This will result in a net-off of the physical delivery obligation.

2. You need to have the stocks in your demat on the day of expiry plus 2 days. So you need to buy the stocks atleast on the expiry day to give delivery without it going to auction

View the full comment thread »