Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
28 Oct 2019, 08:54 AM
Suppose 500 shares i have in demat account. I have a short in CE. I am willing to give those shares against CE. Then how to communicate this to zerodha. Since this is covered call, communication is automatic or i need to inform separately.
Since i already have delivery and inform you, and process is very simple, your delivery charges of 0.5% will still be applicable. Also please since i have 500 shares in demat account, for shorting CE what margin is required. It is simple logic since i have those 500 shares in demat account. You should not charge any charge @ 0.5%. Since it becomes Covered Call. It should be treated as netted off position and should be charged only @ 0.1% for settlement. Is my understanding correct.
Please mention margin requirement of shorting CE (lot size is 500 only) in reliance against shares lying in demat account 500 shares. I have equivalent amount of shares in demat account.