Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019

pb madhavan 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.

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