Announcements

The FDC Limited buyback offer at ₹475 per share closes on 27th April 2022.

What is a buyback and why should you opt for it?
It’s a corporate action where a company offers to buyback its shares from the existing shareholders usually at a higher price than the market price. To learn more about a buyback, click here.

What does this mean for FDC shareholders?
Existing FDC shareholders holding FDC shares as of 19th February 2022 (which is the record date) can offer to sell their shares back to FDC for ₹475 per share by applying to their buy-back offer on or before 27th April 2022.

How to apply for a buyback?

1. Login to the Upstox app using your 6-digit PIN or biometrics
2. Click on the name icon on your top left corner
3. Click ‘Account’, then ‘Corporate actions’ and then Buyback / Delisting/ Takeover
4. Select the required stock for buyback
5. Enter the quantity and click on apply 
6. If you have submitted your POA, then the buyback will be confirmed
   
   OR

If you are applying via a CDSL TPIN, click on ‘Continue to CDSL TPIN’. If you do not have a TPIN, scroll down and select ‘Generate TPIN on CDSL’. Enter the TPIN and approve the transaction. Your buyback order will be confirmed  and you can check the  order status  under the ‘Orders placed’ tab 

If you’re using an old Upstox app, click here How to apply for Buy-backs/Takeover/Delisting?

When can you apply?

Apply for this buyback before 12:30 PM on 27th April 2022

What to keep in mind while applying?

• You can only apply for this buyback if you hold shares of FDC in your Demat account as on 19th February 2022. 
• You shouldn’t sell these shares on or before 27th April 2022. if you’re interested to take part in the buyback offer.
• After applying and offering your shares up for a buyback, you cannot sell them in the market and modify or cancel your original bid.
• You can only sell these shares in the market If the company cancels the buyback and you receive your shares back from the company.
• You will receive the buyback amount for the shares from FDC/ Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• A total of 29,00,000 shares will be accepted by FDC for the buyback and the remaining shares not accepted by FDC will be returned back to shareholders in their Demat account. By 9th May 2022, FDC will credit the payment for the accepted shares and the unaccepted shares will be returned to the user's Demat accounts. The percentage of shares accepted will be decided based on the number of retail investors who have applied for the buyback. 

That’s all about the FDC buyback, stay tuned for more buyback updates from Upstox! 

As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

What is Physical Settlement?

In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash..

Examples of physical settlement:

Futures

Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

Options

Long - 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.

If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

Long - 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

Please note -- 

• Short ITM PE options, treatment would be similar to Long ITM CE options.
  Free ledger balance equal to the contract value to be maintained.
• Short ITM CE options, treatment would be similar to Long ITM PE options.
  Holdings shares of lot quantity positioned to be available in Demat account.

What is the process for Physical Settlement on Upstox?
To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

• To provide your consent for physical settlement of open Stock F&O contract(s) with April-2022 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 26th April 2022.
• Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.
• Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current April 2022 expiry F&O contracts from Wednesday, 27th April 2022 onwards. 
• Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

What other impact could this have on your positions?
Your position will automatically be squared-off on expiry day at 12:00 PM in case:

• You have not provided your consent for physical settlement
• You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.
• In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

What else to keep in mind?
Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

• 10% of delivery margins computed on expiry -4 days EOD (Friday)
• 25% of delivery margins computed on expiry -3 days EOD (Monday)
• 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*
• 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

• To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).
• If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

* If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 26th April 2022.

In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

Brokerage in Physical settlement:

Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

And that’s all. Keep a watchful eye on this page for more updates from Upstox!

• Short ITM PE options, treatment would be similar to Long ITM CE options.
• Free ledger balance equal to the contract value to be maintained.
• Short ITM CE options, treatment would be similar to Long ITM PE options.
• Holdings shares of lot quantity positioned to be available in Demat account.

• To provide your consent for Physical Settlement of open Stock F&O contract(s) with April-2022 expiry visit the ‘Profile’ section on your Upstox account on our App/Web and give your consent from here before EOD on Tuesday, 26th April 2022.
• Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient ledger balances/holdings (whichever applicable) is available.
• Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current April 2022 expiry F&O contracts from Wednesday, 27th April 2022 onwards.
• Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

• You have not provided your consent for physical settlement
• You provided your consent for physical settlement and do not have Ledger Value (equal to contract value)/holdings available for the physical settlement of your positions.
• In a case of funds/holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds/holdings evaluation for the expiring positions will be considered by our team.

• 10% of delivery margins computed on expiry -4 days EOD (Friday)
• 25% of delivery margins computed on expiry -3 days EOD (Monday)
• 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*
• 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*
• To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).
• If the positions are not squared off for any reason (e.g.: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

What is physical settlement?
In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, physical settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

Examples of physical settlement:

Future

Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of  Rs. 5 lakhs.

Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

Option

Long - 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.

If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

Long - 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

Please note -- 

• Short ITM PE options, treatment would be similar to Long ITM CE options.
  Free ledger balance equal to the contract value to be maintained.
• Short ITM CE options, treatment would be similar to Long ITM PE options.
  Holdings shares of lot quantity positioned to be available in Demat account.

What is the process for Physical Settlement on Upstox?
To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

• To provide your consent for physical settlement of open Stock F&O contract(s) with April-2022 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 26th April 2022.
• Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.
• Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current April 2022 expiry F&O contracts from Wednesday, 27th April 2022 onwards. 
• Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

What other impact could this have on your positions?
Your position will automatically be squared-off on expiry day at 12:00 PM in case:

• You have not provided your consent for physical settlement
• You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.
• In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

What else to keep in mind?
Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

• 10% of delivery margins computed on expiry -4 days EOD (Friday)
• 25% of delivery margins computed on expiry -3 days EOD (Monday)
• 45% of delivery margins computed on expiry -2 days EOD (Tuesday)*
• 70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

• To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).
• If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

* If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 26th April 2022.

In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

Brokerage in Physical settlement:

Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

And that’s all. Keep a watchful eye on this page for more updates from Upstox!

Jubilant FoodWorks Ltd. (JUBLFOOD) conducted a meeting with its Board of Directors on 2nd February 2022. As per this meeting, it has declared to the Exchange a stock split in the ratio of 5:1 i.e. for every 1 share you hold of JUBLFOOD you’ll now hold 5 shares in your Demat account.

The record date for the purpose of determining shareholders who will be applicable for this is 20th April 2022.

What is a stock split?
It’s a corporate action where a company divides its existing shares into multiple new shares in order to increase the stock's liquidity. In other words, get more people to invest in the company at its true value.

How does this corporate action impact Futures & Options Contracts?

Impact on Futures Contract: 

• The adjusted futures price shall be arrived at by dividing the old futures price by the adjustment factor. 
• The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 625.

Impact on Options Contract: 

• The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.
• The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 625.

The adjustment factor for the stock split of JUBLFOOD is (5/1) = 5, since the split ratio is 5:1.

Read more on this here.

For all positions taken before 19th April 2022,  you may see a slight deviation in the carried forward (c/f) average price of JUBLFOOD due to the corporate action mentioned above.