How to get back STT paid on ITM Options on Expiry, probably with a Booty!

#1
Many have lost heavily by paying a whopping STT on "in the money options on expiry". It is probably possible to get this back, along with a booty!
Keep your ITM Options Expiry contracts with STT ready!
 

Shiv12345

Well-Known Member
#3
I am a bit curious to know as to what exactly is the role of 'booty' over here?

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#4
The settlement price is given in the NSE website as below :
NSE Settlement Price.png


Going by their definition of options on exercise, the settlement price of the options is the closing price of the underlying! Did the option buyers on Final Exercise get this settlement price? Which means, if you had bought Nifty Options and held it till expiry, the settlement price of that options is Nifty closing price itself! The fact that STT is charged on this amount proves that this is the settlement price.

Everyone, who had bought the options and got them exercised, should demand the settlement price from the broker. That is 800 times the STT paid - is that not a booty!
 

Subhadip

Well-Known Member
#5
The settlement price is given in the NSE website as below :
View attachment 21509

Going by their definition of options on exercise, the settlement price of the options is the closing price of the underlying! Did the option buyers on Final Exercise get this settlement price? Which means, if you had bought Nifty Options and held it till expiry, the settlement price of that options is Nifty closing price itself! The fact that STT is charged on this amount proves that this is the settlement price.

Everyone, who had bought the options and got them exercised, should demand the settlement price from the broker. That is 800 times the STT paid - is that not a booty!
r u serious?????
 

Square

Active Member
#7
OptionsRight, you are getting confused with closing price and last traded price.

So for both, indices or stocks, closing price daily (for MTM) or on expiry day (for final settlement), is the weighted average of last 30 mins of trades.

The STT on exercised (ITM) options on the expiry day is charged on the closing price as defined above. It is not charged on the LTP.
 
#8
Is there a better way to wake them up with a jolt from their slumber?

So much of representations, and no response from the regulators!

June 29, 2017 expiry ITM Options Settlement Price figure (?) alone is Rs.255,993 Crores! Rs.2,55,992,54,52,601 should be that.

It is likely that this kind of definition is made (elsewhere, which would escape everyone's eye) to ensure option buyers will sell it at cheaper fearing STT towards expiry. Not to mention the beneficiaries are the option writers, who can cover them even below the intrinsic value.

Now, it is upto the ITM option holders to take it up with the broker!
 
#10
OptionsRight, you are getting confused with closing price and last traded price.

So for both, indices or stocks, closing price daily (for MTM) or on expiry day (for final settlement), is the weighted average of last 30 mins of trades.

The STT on exercised (ITM) options on the expiry day is charged on the closing price as defined above. It is not charged on the LTP.
The STT price is calculated on closing price, ITM is determined on closing price, and 'half an hour average closing price' has been in vogue for quite a while! Where is the confusion?