Kindly refer to the following revision in the ICCL Circular dated February 15, 2019 on Collection of Net Option value for In/Out of the money options in Cash
Ø Cash collection of option value shall be applicable for the following contracts
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% of Strike Price away (±) from the Closing Value of Index/Stock
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Applicable on contracts with expiry
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≥ 40%
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All contracts (stock and Index)
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≥ 30%
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Index Contracts with expiry up to 2 years
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≥ 20%
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Index Contracts with expiry up to 9 months
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Ø Positions in contracts meeting the above specified criteria on March 28, 2019 (post expiry of March contract) shall be identified. The current option value of short positions in such contracts shall be collected in cash from Clearing Members on March 29, 2019.
Ø The cash requirement for the above mentioned positions shall be only applicable if the contract met the above specified criteria on the date when the outstanding positions were created.
Ø From March 29,2019 for any fresh net short position created in contracts which meet the above specified criteria (based on end of day closing index/stock), the net short value shall be collected in cash from Clearing Member on T+1 day (along with funds pay-in).
Ø The cash collected shall be retained with the Clearing Corporation till expiry of the contract or till the square-up of short positions. In case of partial square-up, the cash collected shall be released on proportionate basis. The cash release shall be on T+1 day (along with funds pay-out)
Members are requested to take note of the above.
In case of any assistance/clarification, please do not hesitate to contact us.
For and on behalf of Indian Clearing Corporation Ltd.
Piyush Chourasia
Chief Risk Officer & Head - Strategy
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Risk Department
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Email
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risk.iccl@icclindia.com
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Contact No:
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+91-22-22728759/5820/8811
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