STT applicable in physically settled contracts

It is mentioned in the physical settlement policy of zerodha that

  • **As clarified by the exchange based on the direction of the Hon’ble Bombay High Court, all physically settled contracts(both Futures and Option) will carry an STT levy of 0.1%(applicable for equity delivery trades) of the contract value for both the buyer and the seller of the contract.**please see this
    But we know that if we leave positions to expire and if options expire ITM then STT shall be charged @.125% of intrinsic value of the option.
    Now please tell me which one of the above two concepts is correct.


As per my understanding, stock option contract which are entitled for physical settlement will carry the STT of 0.1% and the other ITM option contract (indices) which are not physically settled will carry 0.125% of intrinsic value of the option.

1 Like