STT charges at FNO expiry

#1
Hi
I have a query here. I want you guys opinion in this matter.
I had one lot of Nifty 5100 ce dec series unsold at the time of expiry. So I believe naturally it goes for exercise assignment. I bought this call for 94 and closing nifty was 5201. So it must be excercised at 101. I thought I would be in profit. But to my surprise I was in loss. Apart from 70Rs brokerage I was charged for Rs325.07 of STT. All other NIFTY contracts I sold before expiry was charged lest than 1 or 2 rs per lot. But this one particularly charged at325.07 Rs. So guys please advice, whether this is correct procedure? if so how to avoid this in future? Is it by selling (or buying) before expiry? My broker is SHAREKHAN. Is this high STT charges are same with all other brokers? (Plesae confirm this with your brokers and comment here. I will appreciate that)
regards
rajesh
 

Amanc

New Member
#2
Hi
I have a query here. I want you guys opinion in this matter.
I had one lot of Nifty 5100 ce dec series unsold at the time of expiry. So I believe naturally it goes for exercise assignment. I bought this call for 94 and closing nifty was 5201. So it must be excercised at 101. I thought I would be in profit. But to my surprise I was in loss. Apart from 70Rs brokerage I was charged for Rs325.07 of STT. All other NIFTY contracts I sold before expiry was charged lest than 1 or 2 rs per lot. But this one particularly charged at325.07 Rs. So guys please advice, whether this is correct procedure? if so how to avoid this in future? Is it by selling (or buying) before expiry? My broker is SHAREKHAN. Is this high STT charges are same with all other brokers? (Plesae confirm this with your brokers and comment here. I will appreciate that)
regards
rajesh
Dear Rajesh,

STT is only applicable while buying or selling the securities. Its value changes for different segment of the markets. I am also using sharekhan as my primary broker, it looks like there is some kinf of mistake in ur ledger...............just contact the sharekhan team as these charges are absolutely unrealistic.

RGDS AMAN
 
#3
Thanks Aman.
I have already written to Sharekhan. Waiting for their reply now. You may check the attchment here. It is a screen shot in zip format as max allowed here is 100 kb.
Regards
 

anuragmunjal

Well-Known Member
#4
hi Rajesh
the stt charged 2 u ia absoluteley correct. there is no mistake by sharekhan. if u are an option buyer and ur option expires in the money,u r charged the stt as applicable on delivery. ie. rs. 12500 per crore on call price +nifty price. if at all u want 2 write 2 sumone I beleve Mr. Chidambram would b the right person.

hope this helps
 

bunny

Well-Known Member
#5
hi Rajesh
the stt charged 2 u ia absoluteley correct. there is no mistake by sharekhan. if u are an option buyer and ur option expires in the money,u r charged the stt as applicable on delivery. ie. rs. 12500 per crore on call price +nifty price. if at all u want 2 write 2 sumone I beleve Mr. Chidambram would b the right person.

hope this helps
This is new to me because I don't trade much in options. But is it calculated as if it were exercised and the profit was booked?

i.e. STT for buying 50 nifty at call price and then selling at the closing price?
 

anuragmunjal

Well-Known Member
#6
hi bunny,

if u buy an option and sell it anytime within the settlement, u pay absolutely no stt on the buy side and rs. 1700 per crore as stt on just the premium value on the sell side.
whereas if u buy an option and hold it till settlement.
1. if it expires out of money, again u pay no stt.
2. in case it expires in the money u have 2 pay stt calculated at rs. 12500 rs. per crore on the premium value + the UNDERLYING VALUE.

now plz dont ask me how I got to know this, am still licking my wounds.

Ill tell u sumthing very interesting , watch it on the next settlement day. for instance the nifty is trading at 5200 2 hours before expiry,logically the 5100 call should be trading at rs 100, otherwise u get a risk free arbitrage oppertunity.(u buy the call and sell the futures. both have to expire at the same rate) but u will find that atleast one of the two, 5100 call or 5300 put, or both would be trading at least 3- 4 rs discount from the nifty.

regards
Anurag
 
#7
In future contract on expiry it goes for assienment expiry, which rate of stt will be charged , is there is also diffrence in rate of stt like as option in the money exercise

jaikumar singh
 

Capricorn

Well-Known Member
#9
.No. Taxable securities transaction New rate from
01.06.2008 Payable by
A B C D
a Sale of an option in securities 0.017 per cent Seller
a Sale of an option in securities 0.017 per cent Seller
b Sale of an option in securities, where option is exercised 0.125 per cent Purchaser
c Sale of a futures in securities 0.017 per cent Seller


Its like that...:)
 

anuragmunjal

Well-Known Member
#10
hi Capriocon
I totally agree with u .just one other thing.
quoting u " b Sale of an option in securities, where option is exercised 0.125 per cent Purchaser ".
this is calculated on not just the premium value but the 'premium value + the value of the underlying ' 2 b paid by the purchaser.

regards
Anurag