Thanks for reply. And I can understand your concern about hefty STT.
You said
"To avoid such losses we caution traders to square off ITM options on expiry day, however clients who do not square off positions by 3.15 pm and who are running short in their ledger balance we square off their position end of the day."
Should I understand from these lines
1. That you caution traders before squaring off options on expiry day.
2. You square off yourself (if not squared off by the trader by 3.15 pm, that is you do not square off before 3.15)
3. You square off positions only and only if the ledger balance is running short (that is no money in ledger to save you from STT payment) and you do not forced square off, if there is sufficient balance in ledger for STT payment. BTW, what about if there is not sufficient amount in ledger but more than sufficient running positions (equity and/or FnO)
Am I right in my understanding. Please reply
You said
"To avoid such losses we caution traders to square off ITM options on expiry day, however clients who do not square off positions by 3.15 pm and who are running short in their ledger balance we square off their position end of the day."
Should I understand from these lines
1. That you caution traders before squaring off options on expiry day.
2. You square off yourself (if not squared off by the trader by 3.15 pm, that is you do not square off before 3.15)
3. You square off positions only and only if the ledger balance is running short (that is no money in ledger to save you from STT payment) and you do not forced square off, if there is sufficient balance in ledger for STT payment. BTW, what about if there is not sufficient amount in ledger but more than sufficient running positions (equity and/or FnO)
Am I right in my understanding. Please reply