STT applicable in physically settled contracts

F&O
1

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.
2

@shivraj

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.

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