Announcements

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 May-2021 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 25th May 2021.
• 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 27-May-2021 expiry F&O from Wednesday 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 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 Tuesday i.e. 25th May 21 EOD.

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.

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

Mr. Subhash Chander Khaneja has made an offer to buy-back up to 15,25,808  equity shares of Integrated Financial Services Ltd. at a floor price of Rs. 32.54  per equity shares through a reverse book-building process (delisting of shares). You can apply for this offer at the floor price or above it, between 19th May 2021 to 25th May 2021.

Read on to know how you can apply for this offer quickly and easily -

What is a reverse book-building process (delisting of shares)?

A company can delist its shares through a buy-back using the reverse book building process. In this process, the company captures sell orders online from shareholders at various prices, above or equal to the floor price. And once the offer window closes the buy-back price is determined. To know more about this click here.

What does this offer mean for Integrated Financial Services Ltd. shareholders?
Reverse book-building or delisting of shares gives existing shareholders a chance to offer their shares at or above the floor price, through an online bidding system. This means existing shareholders of Integrated Financial Services Ltd.  can opt to sell their shares at a price higher or equal to Rs. 32.54.

How to apply for a delisting?
Just follow these steps:

1. Login into keystone.upstox.com with your client code and back-office password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Takeover” from the drop-down
4. Click on “Apply” and enter the quantity
5. Submit the request
   

Note: Non-POA holders will need to enter a valid pin to authenticate the takeover via EDIS to proceed.

When can you apply?

Apply for this before 2 PM on 25th May 2021.

What to keep in mind while applying?

• You shouldn’t sell these shares on or before 25th May 2021 if you’re interested to take part in this offer.
• After applying and offering your shares 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 offer and you receive your shares back from the company.
• You will receive the offer amount for the shares from Integrated Financial Services Ltd./ Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• A total of 15,25,808  shares will be accepted by Integrated Financial Services Ltd. for the buy-back and the remaining shares not accepted by Integrated Financial Services Ltd. will be returned back to shareholders in their Demat account. 
• Integrated Financial Services Ltd. will credit the payment for the accepted shares and the unaccepted shares will be returned to the user's Demat accounts within 10 days from the date of offer closure i.e. 25th May 2021.
• The percentage of shares accepted will be decided based on the number of retail investors who have applied for the offer.

That’s all about the Integrated Financial Services Ltd. delisting, stay tuned for more updates from Upstox! 

Majesco Limited. Takeover

Aurum Platz IT Private Limited has decided to acquire (takeover) up to 74,43,720 equity shares of Majesco Limited at a price of Rs. 77 per equity shares between 20th May 2021 to 3rd June 2021.

Read on to know how you can apply for it quickly and easily -

What is a takeover and why should you opt for it?
It’s a corporate action where a company or group of companies offers to buy or acquire shares of another company in order to gain enough control in that company. In this case, Aurum Platz IT Private Limited has decided to acquire shares of Majesco Limited. To learn more about a takeover, click here.

What does this offer mean for Majesco Limited shareholders?
A takeover is usually done at a higher price than the market price, thus giving shareholders a chance to sell their shares at a higher price.

Existing Majesco Limited shareholders holding Majesco Limited shares can offer to sell their shares for Rs. 77 per equity share by applying to this takeover offer before 2 PM on 3rd June 2021.

How to apply for a takeover?
Just follow these steps:

1. Login into keystone.upstox.com with your client code and back-office password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Takeover” from the drop-down
4. Click on “Apply” and enter the quantity
5. Submit the request

Note: Non-POA holders will need to enter a valid pin to authenticate the takeover via EDIS to proceed.

When can you apply?

Apply for this takeover before 2 PM on 3rd June 2021.

What to keep in mind while applying?

• You shouldn’t sell these shares on or before 3rd June 2021 if you’re interested to take part in the takeover offer.
• After applying and offering your shares up for a takeover, 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 takeover and you receive your shares back from the company.
• You will receive the takeover amount for the shares from Majesco Limited/ Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• A total of 74,43,720 shares will be accepted by Majesco Limited for the takeover and the remaining shares not accepted by Majesco Limited  will be returned back to shareholders in their Demat account. 
• Majesco Limited  will credit the payment for the accepted shares and the unaccepted shares will be returned to the user's Demat accounts within 10 days from the date of offer closure i.e. 3rd June 2021.
• The percentage of shares accepted will be decided based on the number of retail investors who have applied for the takeover.

That’s all about the Majesco Limited takeover, stay tuned for more takeover updates from Upstox! 

The SIS Ltd. buy-back offer of Rs. 550 per share is LIVE on the Upstox platform till 27th May 2021.

Read on to know what this means and how you can apply for it quickly and easily -

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

What does this offer mean for SIS Ltd. shareholders?
Existing SIS Ltd. shareholders holding SIS Ltd. as of 9th April 2021 (which is the Record date) can offer to sell their shares back to SIS Ltd. for Rs. 550 per share by applying to their buy-back offer on or before 27th May 2021.

How to apply for a buy-back?
Just follow these steps:

1. Login into keystone.upstox.com with your Upstox User ID and password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Takeover” from the drop-down
4. Click on “Apply” and enter the quantity
5. Submit the request

Note: Non-POA holders will need to enter a valid pin to authenticate the buy-back via EDIS to proceed.

When can you apply?

Apply for this buy-back on or before 27th May 2021.

What to keep in mind while applying?

• You can only apply for this buy-back if you hold shares of SIS Ltd. in your Demat account as on  9th April 2021.
• You shouldn’t sell these shares on or before 27th May 2021 if you’re interested to take part in the buy-back offer.
• After applying and offering your shares up for a buy-back, 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 buy-back and you receive your shares back from the company.
• You will receive the buy-back amount for the shares from SIS Ltd. / Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• A total of 18,18,181 shares will be accepted by SIS Ltd. for the buyback and the remaining shares not accepted by SIS Ltd. will be returned back to shareholders in their Demat account. 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 SIS Ltd. buy-back, stay tuned for more buy-back updates from Upstox! 

RIL’s partly paid-up equity shares were suspended from trading on 10th May 2021. You can read more about this in our announcement here. 

According to this, all holders of RIL’s partly paid-up equity shares (as on record date 12th May 2021) will be required to pay the first call of Rs. 314.25 per partly paid-up equity share.
The amount will have to be paid between 17th May to 31st May 2021 (both days included). In case there is a delay in payment or the holders are unable to pay, penalties will be applicable.

How to make the payment of Rs. 314.25 per partly paid-up equity share?
You can make the payment online or offline. Here are the available online payment methods:

1. Through NetBanking or UPI from the R-WAP portal: https://rights.kfintech.com/callmoney.

2. Through ASBA (Applications Supported by Blocked Amount) online if your bank supports it just like you do for an IPO.

What happens in case of a delayed or non-payment of these partly paid-up equity shares?
The following consequences will be applicable:

1. An interest of 8.00 % p.a. will be applicable for the delay in payment beyond 31st May 2021 till the actual date of payment.

2. The partly paid-up equity shares, including the amount already paid will be forfeited 

3. The company will be entitled to deduct from any dividend payable, the outstanding amount for the partly paid-up equity shares and the interest applicable on it

To know more about the applicable consequences and about the offline and online payment methods in detail, click to read the FAQs here.

Key pointers to keep in mind if you own RIL’s partly paid-up equity shares:

1. You need to pay Rs. 314.25 per partly paid-up equity share between 17th May to 31st May 2021. Payment methods are mentioned above. 

2. You will be unable to see RIL’s partly paid-up equity shares in your portfolio holdings on the Upstox app or web platform as they are suspended from trading.  However, you can view them from our Keystone portal by following the steps mentioned here.

3. Consequences as mentioned above will be applicable if you’re unable to pay for the partly paid-up equity shares on time.

Stay tuned for more updates from Upstox!