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

Keval Patel commented on 14 Jul 2021, 04:02 PM

I own one lot of Federal Bank shares. I have shorted a far OTM call for the same. I am ready to deliver the shares if my traded option expires ITM. Why do I have to maintain so much margin, why can’t my margin be the complete lot of shares I already own? To avoid maintaining huge margins, I am ready to get them blocked for trade till expiry if required. Even pledging my shares is out of the question because i would have to unpledge them before a day atleast resulting in huge margin requirements on the last couple of days.

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