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

GR commented on 28 Apr 2020, 10:07 PM

I received the sms alert today on the physical settlement on my open positions. Please clarify on the ‘100% contract value’ requirement. (Is it the ‘Strike price * Lot size’ for the stock OR the Current Spot price). My positions are OTM currently.

Federal Bank – APR – 35 – PE – S

1. Additional Margin required to be maintained – 35 * 7000 (lot size) – Is this correct understanding else please explain.
2. Will collateral suffice for the additional margin.
3. As mentioned in few replies above, will the additional margin requirement kick in only when the position moves to ITM.
4. Also how does one avail the temporary funding for the margin shortfall with the interest, if needed.


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