Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
12 Oct 2013, 09:12 AM
Sharada,
What you haven’t mentioned is if it is 1 lot of nifty futures or options.
But all nifty futures and options on the expiry day get adjusted to the closing price of the Nifty Index.
If you buy/sell Nifty futures and hold it to expiry, the STT doesn’t increase, it remains the same.
If you sell Nifty options and hold it till expiry, STT doesn’t change.
If you buy Nifty options and hold if till expiry, the price of option firstly gets adjusted to closing Nifty index price on the expiry day. If the buy options has any value to it, STT will go up as mentioned in the blog above, if the buy options has no value it gets expired worthless and no STT is applicable.