This varsity article explains about stt trap
Update: 2019 Budget, no more STT trap. STT on exercised options to be on intrinsic value from Sep 1st 2019. Check this. Update: With effect from 31st
Est. reading time: 5 minutes
No need to worry about stt trap now
Traders,
Latest update 21st Aug 2019 - Starting Sep 1st, STT on exercised options would be on the intrinsic value , so truly no more STT trap.
The discussion on the below thread becomes redundant after this update.
An amazing news for all option traders out there. Finally, exchanges have found a fix for the STT anomaly on exercised options. Here is link to the BSE circular with the announcement, and this for the NSE circular .
So on the expiry day, there will be an option to not exercise cer…
STT for 1 lot of unexercised in the money options are approximately 30 rupees per lot of banknifty and approximately 15 rupees per lot of nifty. It depends upon strike price and intrinsic value.