Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
27 Jul 2015, 09:41 PM
NITHIN,
Please refer to my previous post of having to pay Rs 42000 STT on 5000 contracts of NIFTY 8400 PE expired ITM after trading hours at 8398 on 25 June 2015.
Will I have a legal standing on the grounds that the buyer of an option contract is NOT OBLIGATED TO SELL OR EXERCISE his option? A buyer of an option pays a premium like we pay an advance amount to buy an asset at a later point in time. If one does not exercise the option the advance amount paid is forfeited.
Thanks,
Joe