Settlement with Physical delivery

I shorted 2 lots of Reliance CE 2100 which went in the money on expiry day ( reliance closed at 2144) and were physically settled by my broker

I had assumed that they would be sold at 2100. So 2100 x500 = 10,50,000

But I was paid 10,48,950 i.e. less Rs.1,050

So are the shares sold at some average price which is why i was paid less?

How is the settlement price decided?

Shares will be sold at Strike Price, ie. 2100. You must have not accounted for charges arising through physical settlement. For physical settlement, STT is applicable at 0.1% on the physically settled value, if you calculate, this tallies exactly to Rs. 1050.

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Thanks Shubh. So STT whether the broker sells the shares to give physical delivery or if i sell the shares myself is the same? 0.1% right?

@ShubhS9 Doesn’t Zerodha charge brokerage of 0.25% for physical settlement? Please clarify.

Yes, 0.25% in case you’re giving or taking delivery of shares and 0.1% in case the positions are netted-off. You can check this post for more information.

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Sorry for being persistent. In @_satya case (OP) it appears he was not charged brokerage even though shares were physically delivered. ?

PS: I am brand new to Zerodha.

That trade was taken at HDFC securities and they have charged me 0.5% brokerage.

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