Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Mittal commented on 28 Nov 2013, 11:40 AM

Hi Nithin,

Thanks for the replying all the queries.
I got all the scenarios you mentioned.

I have only only one doubt for the below scenario:

NIFTY expires at 6002
Say I bought one call 6000 strike price.
The value of call (or payoff) will be 2 * 50 = 100 at expiry.
But I didnt square off my position and let it expire so I have to pay excess STT of around 350(approx amount) as call is ITM.

So what will happen?

Result 1: Only 100 will get deducted instead of 350 as payoff of call is 100

Result 2: 100-350 = 250 will get deducted from my trading account. Will they deduct excess 250 from my trading account?

Please Nithin comment what will happen Result 1 or Result 2 or any other.

Anticipating your reply


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