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

Shruthi commented on 27 Jan 2023, 10:50 AM

Hi Sathish, if you hold a long call or put option and if the OTM position turns ITM, the delivery margin is applicable. Holding positions without the exchange stipulated physical delivery margin (including long options) can lead to margin penalties. You can check more details on this here.

Also, if you do not have sufficient funds to take delivery of underlying shares, your account will result in a negative balance on which interest is applicable at 0.05% per day. In case, the obligation is to deliver shares and if you do not have shares in your holdings, this will result in short delivery and auction penalty which can be up to 20%. You can learn more about short delivery here.

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