Relaxed margin policy on Physical Delivery Stock F&O contracts- Oct 2019

Starting from October 2019 expiry, all stock F&O contracts will be compulsorily physically settled. Owing to this, at Zerodha, we have changed our physical delivery policy to allow for more activity in such contracts during the expiry week. Below are the major changes:

  1. Increased margins will be charged only on Wednesday and Thursday of the expiry week. This was earlier charged from Monday of the expiry week.
  2. Increased margins will twice of SPAN +Exposure(NRML margin). This was earlier charged at 40%, 50%, 60% and 80% of the contract value starting from Monday till Thursday.
  3. For give delivery positions, you will be allowed to carry the positions even if you don’t have the deliverable shares in your demat account as long as you have the applicable margins in your account.

You can read the full policy here.

Please post any queries you have on the same below.