Comment on Policy on settlement of compulsory delivery derivative contracts

Faisal commented on 16 Jan 2019, 03:57 PM

1. All long ITM contracts will be deemed to be exercised if the intrinsic value of the contract covers STT and other charges(if it is assigned). The broker(Zerodha) will mark this as assigned with the exchange based on the calculation.
2. This still remains a right(not an obligation) to the option buyer and he/she can choose to exercise it or not. Yes, there are additional physical delivery margins being charged for the long position he/she holds but this is for the exchange to enable smooth delivery of the stocks if the option buyer ends up exercising his option.

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