Impacted by Zee Tele's demerger

#1
Hello,

I bought one lot of Zee Tele December call option @ Rs 12. It nose-dived to Rs 0.10 just before the cut-off date for demerger (15 Dec). I am now not able to sell even at Rs 0.10. I also read a news item which said that all F&O contracts have become invalid from 15 Dec. As per the contract I have the right to sell on or before 28th Dec.

How can any contract cease to exist well before its expiry? Do I have no protection as a trader?

Regds,
Ashwirag.
 
#2
The cut off date for the demerger was announced way in advance. As a 'trader' you should have known this while buying the option. Yes, all contracts expired on the 15th Dec. If your call was in the money it would be automatically exercised, while if it was out of the money, you would lose the entire premium.
 
#3
yes, i agree with ivanboesky, that trader / investor should be aware of facts before putting hard earned money in the market. but it would had been better if exchange had updated the expiry date of contracts when demerger date was declared; to avoid confusion.
 

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