Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
01 Aug 2013, 09:03 AM
Additional STT is charged when you are the buyer of an in-the-money option and have not squared it off before market closing..In such a case the option gets exercised and you get charged STT at a higher rate.
Note that STT is charged for F&O only on the selling side..
In case you are writing/selling an option you would receive credit of the premium and if the options you have written expire worthless you get to keep the premium credit..No excess STT gets charged..
Additional STT = (0.125% of the contract value*)
Contract Value (Call Option) = (Strike Price+Option Premium)*Lot Size
Contract Value (Put Option) = (Strike Price-Option Premium)*Lot Size