Need Help

Hi Friends

On 31st of Dec 09(December Expiry) I bought 50 lots of Call options @ 1.45 and 50 lots of Put Options @ 0.45 and I let the exchange to sq up my position. As I know if exchange sq up my positon I didn't have to pay any brokerage.

In the evening I got a Digital contract in my email which shows that call options has been excersied @ 1.05 paisa. I was shocked that A STT of Rs. 16253 has been charged. I was not aware of STT charges on Expiry and I know that STT charges are on selling side. I didn't sell my options on expiry then why will I pay STT of such a huge amount of Rs. 16253/- and moreover a brokerage has been charge on call options including tax and other charges.

I request guys to help me what should I do now. I am not in position to pay this much amount.

Regards

Vinod Gupta

vinod , rk global is right as per your query

u bought 50 lots of 5200 call , now on settlement day nifty closed at 5201.05

so ur call option got exercised

so 50 lots *50 = 2500*5201.05 = Rs 13002625

so now u have to stt @ 0.125% of the settlement price and shall be paid by the purchaser

hence 13002625*0.125% = rs 16253

hence you have now no option but to pay this stt


please read below sebi circular on exercise option

sections 98 and 99 of Chapter VII of the Finance (No 2) Act, 2004 to provide that with effect from June 1, 2008:

where option is exercised, STT shall be levied at the rate of 0.125% of the settlement price and shall be paid by the purchaser;

sorry man , but you have no choice.

regards