Comment on Policy on settlement of compulsory delivery derivative contracts

Nagabhooshan Hegde commented on 04 Apr 2019, 10:43 PM

It doesn’t make sense to ask for extra margin, if already underlying stock equal to lot size is present in demat account.

Any delivery obligation which will arise if short call option becomes ITM can be handled using stock present in demat account.
Why there will be need for extra margin up to 80% of contrris not clear.

Even if I pledge the stock, I won’t get full margin due to 50:50 cash to collateral ratio.

If short option become ITM and underlying stock is pledged. Will it automatically unpledged and delivered?

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