Contract Expiry & S.T.T

Hi All.
I am a new trader, just wanted to clear one thing.
I have purchased 6500 Put option of nifty for April month, it is displaying in the trade terminal with expiry date of April 30, 2020. As I have researched I came to know that STT only applies when the contract expires I.T.M & only if the position has not been exited on expiry day ?? Is it true. What are the scenarios if contract expires O.T.M & I.T.M ?

Please help me on this, as I came to know about Chirag Gupta case, so I’m worried, as I am new to markets.

Hey Akshay,

You have to pay the STT when you close the I.T.M contract yourself, the applicable STT for options are mentioned here.
You can check the Nithin sir’s post on STT articulation to know the applicable STT in the above-mentioned scenarios. Please read the post here.

1 Like

Don’t worry, after Chirag Gupta debacle SEBI has rightfully changed the STT charge.

  1. OTM: No STT
  2. ITM: if you are ITM by 50 points (Nifty expires at 6000 in your case) then STT= 50x75x0.01%
    I.e. before the SEBI update it would have been 6000x75x0.01%.
1 Like