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

Faisal commented on 03 Nov 2019, 11:09 AM

1, 2, & 3. Since you had short futures, you have a give delivery obligation of shares. Since you don’t have the shares in your demat account, a short delivery auction margin block is posted to your account. Once the shares are settled from the auction, the margin block will be reversed and the credit of the shares you delivered will be posted(minus the auction penalty).

4. Yes, last thursday of every month is the expiry day of the monthly futures series.

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