if I keep my nifty index Far OTM sell position & Far ITM buy position open after closing on expiry will I be saving brokerage charges? Is the advantage significant?
For far OTM sell position, maybe it makes sense to leave the position open.
But, you pay more STT (0.125%) instead of 0.0125% and brokerage is gets charged for the exercised contract.
For contracts expiring at ITM or deep ITM:
STT is charged on exercised contracts at the rate of 0.125% of intrinsic value (how much in-the-money the option is), i.e. intrinsic value * quantity and not on the total contract value. Brokerage will be charged on both sides, i.e. when the options are bought and when they are settled on the expiry day.
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