If the exchange settles a contract on its own, is the client required to pay any other charges?

If the exchange settles a contract on its own the client has to pay a STT (Securities Transaction Tax) charge. If there are any “In the Money” Options in the client’s account on Expiry Day, then after the market closes, Both NSE & BSE exchange themselves square-off these positions at a higher STT of 0.125% (STT of delivery) instead of the normal STT charge of 0.05%.

For example, if a client has a 8700 Nifty Call option at Expiry and the market closes above 8700, the Client will be charged 8700 * 25 * 0.125% = Rs 271.88 per contract held.

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