SAMCO Policy for Physical Settlement of F&O Contracts

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Since the time NSE has introduced the following Circular NSE circular dated September 26, 2019 , All F&O Stocks would have to be physically settled.

This means that if you are a buyer of any of the future contract on any F&O stocks and if you do not sell or square off the contract before the expiry, you would have to buy the underlying shares and pay the full amount of the contract and if you are unable to pay, a margin penalty will be involved. Similarly, if you are a seller of a future contract and you do not buy it back before the expiry, you will have to give actual delivery of shares and if you are unable to give delivery, the shares would be auctioned.

To save you from the above costs, the SAMCO RMS Policy is upgraded to incorporate the below points

  • All outstanding positions in contracts in these stocks at end of business on day previous day of Expiry shall be considered as MIS positions on market opening on the Expiry Day and will go into auto-square off mode.
  • No fresh positions in NRML shall be permitted in these contracts on expiry day for current month contracts. Product types MIS/BO/CO shall continue to be available and shall be squared off at the usual time of 3:15 PM.
  • No position conversion or spread orders shall be allowed in these contracts on the expiry day.

What can you do if you have a position in these stocks?

  • Option 1 – Rollover using spread contracts or manually on or before end of trading on the day before Expiry Day.
  • Option 2 – Manually Square off positions on the Expiry Day  before 3 PM which shall be MIS positions. Clients wanting to carry positions to next month can can exit these MIS Positions for current month and enter new positions in next month contracts in either the MIS/NRML product category as clients may desire.

What happens in case you do not complete either of the 2 options above?

In case both Option 1 or 2 are not completed by the clients, SAMCO RMS shall square off open positions (which shall be outstanding as MIS) at 3:15 PM on the Expiry Day.

Happy Trading!

19 Comments

    1. Dear Mr. Deepak, thank you for getting in touch with us. This list was set by the Exchange, based on the value-research made by its own internal teams.
      We hope this clarifies things. Thank you for your time. Have a great day!

    1. Dear Amulya, thank you for getting in touch with us. We do have multiple platforms available for trading options in the market. We’ve got the mobile app (StockNote), web terminal (trade.samco.in) and the desktop EXE (Nest Trader). It’s entirely up to you to decide on the platform that’s more convenient for you.
      Thank you for your time. Have a great day! 😀

  1. Anoop Aggarwal

    Very very thanks for intimating clients in advance.

    1. Dear Jayesh, yes, this is applicable to the option positions (In-the-Money) as well. Those positions which are “Out-of-The-Money” are not included in this.
      We hope this answers your question. In case you have any questions or need any help, please do contact us; we’re happy to help you. Thank you for your time. Have a great day!

  2. Tobias M

    Bottom line: Can the traders be saved from physical delivery by SAMCOs RMS intervention – yes or no? Try to speak plain simple English please no technical terms. By RMS whatever intervention, is physical delivery avoidable

    1. Greetings! Thank you for getting in touch with us. Yes, by squaring-off your position in intraday trade, you won’t be receiving the delivery of shares; everything gets settled in cash this way.
      We hope this answers your query. In case you have any questions or need any help, please do contact us; we’re happy to help you. Thank you for your time. Have a great day!

  3. Chetanbhai Arvindbhai Mamtora

    Thanks so very much for traders

    1. Dear Amit, thank you so much. Do stick around for more Exchange updates, right here in our knowledge center. Happy Trading! 🙂

  4. Tobias M

    Thank you sir for your response. On expiry in-the-money gets ‘exercised’ and the trader is in profit. In your above article to all traders you mention ‘squaring off’, do you mean exercised or something different.? Please clarify with a trade example. Also, this government circular is for all contracts – near month, middle month and far month? Thanks.

  5. ALOK TIWARI

    Sir I have a position in hexaware out the money option
    Wat should I do??
    I don’t want to take delivery
    Till which date I can wait for my position??

    1. In compliance with the new NSE regulations, SAMCO shall consider your carryforward position as an intraday position on the day of the expiry, and square-off your positions at 3.15pm, and thereby save you the hassle of physical settlement. If you wish to maintain any futures positions, you may roll over the said instruments.

      We hope this resolves your queries. In case you have any questions or need any help, please do contact us; we’re happy to help you. Thank you for your time. Have a great day! 🙂

    1. Dear Prakash, to check your profit & loss, kindly open your back-office webpage and scroll down to ‘Reports’ tab and press the ‘Profit &loss Equity’ or ‘Profit& loss Derivatives’ Tab. You can find the consolidated report there, categorized by year-on-year basis.

      If you have any more queries or issues, feel free to contact us; we’re happy to help you. Thank you for your valuable time. Have a great day ahead!

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