NO MORE STT trap on exercised In the money options

[nithin]

@kars

Wait for 2 more weeks and the new STT rules for options will be in place. (from Sep 1 onwards … dont know when sebi and exchanges will sent out notices).

Update

From Sep 1st STT on exercised options is on the intrinsic value and not contract value

Starting Sep 1st, finally no more STT trap on exercised options

So finally, after years of voicing this issue on every possible forum, there is no more STT trap on exercised options (announced this budget). Here is the circular from NSE http://www.nseindia.com/content/circulars/FATAX41919.pdf [image] STT on exercised contracts from Sep 1st, 2019 will be charged at the rate of 0.125% of intrinsic value (how much in-the-money the option is) and not on the total contract value like earlier. Intrinsic value for OTM (out of the money) options is always zero,…