This is with reference to SEBI circular no: SEBI/HO/MRD/DP/CIR/P/P/2018/67 dated April 11, 2018 and circular no. NSE/FAOP/37594 dated April 23, 2018, Please find attached NSE Circular on Physical Settlement in Equity Derivatives having details of Procedure for Clearing, Settlement and Risk Management of contracts which shall be physically settled.
In view of the Exchange circular on physical settlement in Equity Derivatives for 46 securities (List of Securities is attached), you are requested to note the following:-
- You may roll-over or square off your open positions in Stock futures and Stock Options contracts for the list of 46 securities identified for physical settlement on or before 3 days prior to expiry day (i.e Monday 23.07.2018) ) or RMS will start squaring off your open position 3 days prior to expiry day (i.e 24.07.2018 onwards) on best effort basis. Elite Wealth Advisors Limited will not be responsible / liable for the loss arising from the same.
For example you need to roll-over / square off July 2018 expiry contracts on or before July 23, 2018 where the expiry date is July 26, 2018. However, if the July 2018 contracts are open beyond July 23, 2018, the same shall be squared off by RMS on best effort basis from 24.07.2018 onwards .
- In cases where square off is not effected , then such contracts will be physically settled and you will be required to provide funds / securities as per settlement obligation. Any loss arising out of such physical delivery will solely borne by you. Also the penal charges for not meeting the obligations of physical settlement will have to be borne by you.
- You will not be allowed to create further positions in the mentioned 46 securities prescribed for physical settlement for July 2018 expiry contracts 3 days prior to expiry day (i.e Monday 23.07.2018).
We would request you to take necessary steps as per the above communication.