STT ON EXERCISED OPTIONS Please note that whenever an option is - TopicsExpress



          

STT ON EXERCISED OPTIONS Please note that whenever an option is exercised, the applicable STT rate is 0.125% on the settlement price (underlying closing price). It is advisable to square off ‘in the money’ option by selling in live market (and not letting it expire) to avoid extraordinary high STT. For example On the day of expiry, you have an outstanding position in Nifty 5000 call and Nifty closes at 5050. Case 1- If you square off this position by selling in live market at Rs. 50, then STT payable will be = Premium * qty * 0.017 % = 50*50*0.017% = Re 0.425 Case 2 – If you don’t sell in live market and leave the outstanding call position to expire, then STT payable will be = Settlement price * qty * 0.125% = 5050*50*0.125% = Rs 315.625 Please take note of above example and act accordingly. Please re-confirm with your Broker.
Posted on: Thu, 28 Aug 2014 07:30:20 +0000

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