Missed Squaring Off on Expiry Day

F&O
1

Hello everyone,

I held a NIFTY 23600 CE option that expired today(12 Dec) but unfortunately missed squaring it off due to illiquidity Now, I have a few questions about the settlement process:

  1. Since NIFTY closed at 24548.70, does this mean I will receive the intrinsic value of 24548.70 - 23600 = ₹948.70 ?
  2. Is there any penalty or additional charge for not squaring off the position on time?
  3. What is the timeline for the settlement amount to reflect in my account?

I would appreciate insights or guidance from anyone familiar with the options settlement process. Thank you!

Looking forward to your advice!

@Meher_Smaran @ShubhS9

3

Hi @deepakjain05

  • ITM option contracts are automatically exercised on expiry.
  • The profit or loss will be settled in cash based on the difference between the strike price and the closing price of the index on the expiry day.
  • Securities Transaction Tax (STT) of 0.125% of the intrinsic value is applicable.

T+1 day (Today)

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