Will physical settlement change now that we are moving to the T+1 cycle? Suppose I have not closed my short P.E position and I have to take the physical delivery. Right now, in such case I will get the delivery of share at t+4 days
Will this also change now? Will it be reduced by one day and become T+3 days now?
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For the January expiry, the physical delivery will happen as per old T+2 settlement, so the shares will be credited to your account on Monday (as Saturday and Sunday are holidays).
From February expiry onwards, the physical delivery too will happen on T+1 day, this means the shares will be credited to your account the next day.
These will be credited today and you will be able to see in your holdings on Kite tomorrow. Also, in case the counterparty defaults to give delivery, the credits of shares from physical delivery post-auction may take up to T+4 days.
Who is the counterparty in the case of physical delivery? the company itself?
No, it’ll be another trader who will be holding long position against your short position.
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Sorry, I didn’t get this. Is it not necessary that some trader must have a short C.E. position at the same strike price who did not close his CE position?
@ShubhS9 Can you please clarify this? What is there was no buy order of 7400 CE. What happens in this case? Who delivers the shares? the company?
If you have sold, someone has bought. If you have open short, someone has open long.
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thanks
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but his position ended in OTM right? so he got the premium…why will he give delivery of shares?
??
If it is OTM, no delivery.
Sorry, my bad. I considered others persons position as CE…Its P.E and ITM so you are right
Hi friend,
how must does physical delivery cost you? 20%
i am in similar postion and not sure how much it will cost me…some says it will be minimum 20-40% so i will be in huge loss. ihad shorted ce but failed to close it
tnx
Hi, your case is different. I had to take the delivery of shares while you had to give the delivery of shares and you didn’t share in your Demat account. As per my understanding, your loss will be max 25% (including charges and brokerage)
First, Auction will take place on Monday. If your shares are bought in the auction, you will make a maximum loss of 20%. Note that in Auctions I have seen shares getting sole below 10% so if you are lucky, you will have less loss 
If not sold in auction, 20% higher than closing price on auction day for cash settlement. I said max 25% considering the charges and brokerage.
Let’s hope that people buy your shares in the auction
Which share had you shortlisted?
You can check if the stocks are bought in auctions and at what price from the Zerodha app/web console. I think the auction starts at 2 PM and ends at 2.30 PM.
Thanks friend.
Its hindalco…seems volume wint be issue …someone told me price will be close to hindalco prie in open market.
always close your position before 2.30 PM even if you are at a loss. When the market is about to close, you may find it difficult to close as the buyers can demand a very high price as they know sellers would want to close their position rather than keep it unclosed.
I have closed many positions even at 3 PM (which is not recommended) I am surprised you were unable to close the position for Hindalco as it has good volumes.
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Check your 25th Jan profit statement. Zerodha Console > Reports > P&L
Segment future and options, P&L = Realized P&L.
I think you will get 17,780 Rs as you are a seller.
No…i failed to closes my short ceposition…so it will go for auction…if it gets bkught around 567 then my loss will be low. …it all depends on wmat what price it will get bought on monday.