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  • Important update on physical settlements of contracts with a March 2025 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value
    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value
    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.
    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.
    If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

    Please note — 

    – Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.
    -Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity positioned to be available in Demat account.

    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

    -To provide your consent for physical settlement of open Stock F&O contract(s) with March 2025 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Tuesday, 25 March 2025.

    -Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.

    -Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current March 2025 expiry F&O contracts from Wednesday, 26 March 2025 

    -Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared-off on expiry day at 12:00 PM in case:

    -You have not provided your consent for physical settlement

    -You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    -In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    -10% of delivery margins computed on expiry -4 days EOD (Friday)

    -25% of delivery margins computed on expiry -3 days EOD (Monday)

    -45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    -70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    -To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).

    -If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    * If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Tuesday, 25 March 2025.

    In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!

  • Pensionable Age Cut: Will the age for additional pension for retired employees be reduced? know latest update


    – Advertisement –

    Pensionable Age Cut: The government has assured that the payment of additional pension is made automatically through banks and pension distribution agencies. Instructions are also issued from time to time to avoid any delay or disturbance in this.

    There has been a long standing demand to reduce the existing age limit for additional pension to retired central employees. However, the government has once again clarified its stand on this matter. The central government said that there is no plan to reduce the minimum age eligibility for additional pension to retired central employees.

    – Advertisement –

    There is no approval for reducing the minimum age limit for additional pension
    The central government has made it clear that the minimum age for additional pension will remain 80 years. In response to a question asked in the Lok Sabha, the government said that there was a proposal to increase this limit to 65 years, but it has not been approved.

    An MP asked whether the government was considering reducing the age limit to 65 years as recommended by the Parliamentary Standing Committee on Pensioners’ Grievances and, if so, sought details about it.

    In response to this question, Union Minister of State for Personnel Jitendra Singh said in the Lok Sabha that on the recommendation of the Sixth Pay Commission, the government has approved 20% additional pension at the age of 80 years, 30% at the age of 85 years, 40% at the age of 90 years, 50% at the age of 95 years and 100% at the age of 100 years.

    He said that as age increases, especially health-related needs also increase, so provision for additional pension has been made. But there is no plan to reduce the minimum age eligibility for additional pension.

    Will the rules on additional pension age change for central government employees?
    The Parliamentary Standing Committee had recommended giving additional pension from the age of 65 in 2021. The government considered it and also submitted its report in 2022. After this, the committee decided not to pursue the issue further. That is, at present the government has no plans to reduce the minimum age eligibility.

    How are central government pensioners paid?

    The government has assured that the payment of additional pension is done automatically through banks and pension distribution agencies. Instructions are also issued from time to time to avoid any delay or disturbance in this.

    How will the impact of rising inflation on pension be reduced?

    Dearness Relief (DR) is given to pensioners, which applies to both their basic pension and additional pension. Its rate is the same as that of Dearness Allowance (DA).

    Possibility of change in pensionable age in future?

    At present, the government does not intend to make any changes in this rule. But in view of the rising inflation and cost of living, the government will keep an eye on this issue. It is clear from this decision of the government that one should not expect to get additional pension before the age of 80 years. At present, Dearness Allowance is the only support for retired central employees, through which they can get some relief.

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  • DA Arrear Payment: Will government employees get 18 months of DA arrears? know latest update


    – Advertisement –

    DA Arrear Payment: The central government increases the Dearness Allowance every year in January and July. But in 2020, due to the Covid pandemic, the government stopped the DA hike for 18 months.

    During this period, the employees were supposed to get DA in three installments, which is still pending.

    – Advertisement –

    Central government employees and pensioners have been demanding for a long time to pay the Dearness Allowance (DA) which was stopped during Covid-19. The Confederation of Central Government Employees and Workers has once again raised the issue of long pending demands of central government employees and pensioners.

    According to a circular issued by the Confederation, one of their various demands is to pay the arrears of Dearness Allowance (DA) withheld during the Covid pandemic. This DA arrears is from January 2020 to June 2021.

    In this circular, the government has been asked to resolve many other issues including the pending DA issue as soon as possible. Let us tell you that in the circular issued on 7 March 2025, the Confederation said that due to the lack of attention of the central government, their legitimate demands have not been met yet. Employee organizations have been agitating for their demands for a long time.

    What are the special demands of the Federation? 

    The organization’s charter of demands includes several demands, such as:

    • Demand for appointment of committee members including chairman under 8th Pay Commission.
    • The New Pension Scheme (NPS) should be abolished and the Old Pension Scheme (OPS) should be restored.
    • The three DA installments withheld during the Covid pandemic should be paid.
    • The amount deducted from the pension of employees and pensioners should be restored in 12 years (currently this period is 15 years).
    • The 5% limit on providing jobs on compassionate grounds should be abolished and all eligible applicants should be given appointment.
    • The vacant posts in all departments should be filled immediately and outsourcing and privatization in government departments should be stopped.
    • Employees’ organizations should be allowed to work democratically.

    Know what is the issue related to DA arrears?

    The central government increases the Dearness Allowance every year in January and July. But in 2020, due to the Covid pandemic, the government stopped the DA hike for 18 months. During this period, the employees were to get DA in three installments, which is still pending. The Federation says that the government should pay these pending arrears as it is the right of the employees and pensioners. But the government has not yet accepted their demand.

    Will the government pay the DA arrears?

    The government has made it clear on several occasions that it will not pay the DA arrears. The government’s argument on this is that it is not financially possible to do so. However, the Federation said in its circular that the employees will continue to raise their demands.

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  • Important update on physical settlements of contracts with a February 2025 expiry

    As per a SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on expiry date.

     

    What is Physical Settlement?

    In a Stock F&O contract, when there is an open position that has not been squared off by its expiry date, Physical Settlement takes place. This implies they have to physically give/take delivery of Stocks to settle the open transactions instead of settling them with cash.

    Examples of physical settlement:

    Futures

    Long positions of 1 lot of Reliance, 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have a complete contract value of Rs. 5 lakhs.

    Short positions of 1 lot Reliance 250 quantity at Rs. 2000 i.e. Rs. 5 lakh contract value

    F&O = 20% charges i.e. Rs. 1,00,000. This means, you are required to give Rs. 1 lakh, but if you decide to physically settle then you need to have the holdings of 250 quantity of Reliance and Rs. 1 lakh margin money till expiry date.

    Options

    Long – 1 lot of Reliance, 250 quantity for strike price of Rs. 2000 Call (CE) Options.

    If the underlying price of Reliance is greater than the strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of Rs 5 Lakh in your account, else physical settlement would not be done.

    Long – 1 lot of Reliance, 250 quantity for Strike price of Rs. 2000 Put (PE) Options.

    If the underlying price of Reliance is lesser than strike price of Rs. 2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in Demat account, else physical settlement would not be done.

    Please note — 

    -Short ITM PE options, treatment would be similar to Long ITM CE options.
    Free ledger balance equal to the contract value to be maintained.

    -Short ITM CE options, treatment would be similar to Long ITM PE options.
    Holdings shares of lot quantity positioned to be available in Demat account.


    What is the process for Physical Settlement on Upstox?
    To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

     

    -To provide your consent for physical settlement of open Stock F&O contract(s) with February 2025 expiry visit the ‘Profile’ section on your Upstox account on our App / Web and give your consent from here before EOD on Monday, 24 February 2025.

    -Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there is sufficient  ledger balances / holdings (whichever applicable) is available.

    -Kindly, plan your trades keeping in mind that you will not be able to trade in fresh positions in the current February 2025 expiry F&O contracts from Tuesday, 25 February 2025 onwards. 

    -Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.

    What other impact could this have on your positions?
    Your position will automatically be squared-off on expiry day at 12:00 PM in case:

    -You have not provided your consent for physical settlement

    -You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.

    -In a case of funds / holdings not being available for all the open positions, we will execute square offs for all the positions. Thus no partial funds / holdings evaluation for the expiring positions will be considered by our team.

    What else to keep in mind?
    Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner as explained below:

    -10% of delivery margins computed on expiry -4 days EOD (Friday)

    -25% of delivery margins computed on expiry -3 days EOD (Monday)

    -45% of delivery margins computed on expiry -2 days EOD (Tuesday)*

    -70% of delivery margins computed on expiry -1 day EOD (Wednesday)*

    -To avoid margin shortages, Upstox would be blocking such (above mentioned) delivery margins from Beginning of the Day (BOD) instead of End of the Day (EOD).

    -If the positions are not squared off for any reason (e.g: non-liquidity), then the contract would have to be settled physically and you would be liable to pay the entire amount of the settlement.

    * If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Monday, 24 February 2025.

    In case of spread contracts, you are advised to provide margins for both the legs  since the risk of one leg square off by you anytime would result in physical settlement of the other leg.

    Brokerage in Physical settlement:

    Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery brokerage will be 0.25% of the physical settled value. For all the netted off positions brokerage will be 0.1% of the physical settled value. All physical settled contracts (Futures & Options) will also carry an applicable Exchange charge.

    And that’s all. Keep a watchful eye on this page for more updates from Upstox!

  • Exciting Update: Faster & Safer Settlements Coming Your Way!

    We have great news! SEBI’s new Direct Payout System is set to go live on 24 February 2025, making the settlement process smoother, faster, and more secure for you.

    What is a Direct Payout System?
    Direct settlement is a new process that ensures that when you buy stocks, they are credited directly to your demat account.

    What’s changing for you?
    Everything remains the same—just faster and smoother! However, to ensure a seamless transition, a few services will be temporarily unavailable on 24 & 25 February 2025:
    – MTF (Margin Trading Facility) buying will be unavailable on 24 & 25 February 2025
    – Stocks bought on 24 February won’t be available for selling on 25 February 2025 (BTST)

    We’re committed to making this transition as easy as possible for you. Stay tuned for further updates, and as always, we’re here to help with any questions!

  • NSE Update: F&O Expiry Moving to Monday!

    Starting 4 April 2025, NSE is shifting its F&O expiry schedule from Thursdays to Mondays.

    📅 New Expiry Days:
    ✔ NIFTY Weekly Expiry → Every Monday
    ✔ NIFTY, BANKNIFTY & Stock F&O (Monthly & Quarterly) Expiry → Last Monday of the Month

    This change could impact your trading strategy—so plan your trades accordingly!

  • Revision in expiry dates of commodity futures contracts expiring on 31 March 2025

    The MCX has revised expiry dates of commodity futures contracts expiring on Monday, 31 March 2025.

    This change is due to a trading holiday on Monday, 31 March 2025, in observance of Eid-Ul-Fitr (Ramzan Eid).

    These contracts will now expire on Friday, 28 March 2025, instead of the originally scheduled Monday, 31 March 2025.

    Keep in mind:

    Although the Market Watch Screen will continue to show the existing Expiry Date of 31 March 2025, trading in these commodity contracts will only be available till Friday, 28 March 2025.

    Please refer to the table to check the revised expiry dates & tender periods:

    To learn more, refer to the MCX circular.

  • Revision in expiry dates of Zinc & Copper Options contracts expiring on 24 March 2025

    Due to a trading holiday on 31 March 2025 (Eid-Ul-Fitr), the expiry dates for Zinc and Copper Options contracts have been revised.

    Zinc Options expiry date revised to Fri, 21 Mar ’25 from Mon, 24 Mar ’25.
    Copper Options expiry date revised to Fri, 21 Mar ’25 from Mon, 24 Mar ’25.

    Note: The Market Watch Screen will continue to show 24 Mar ’25 as the expiry date, but trading will end on 21 Mar ’25.

    To learn more, refer to the MCX circular.

    Please refer to the table to check the revised expiry dates for Futures & Options contracts:

  • Free ration: Relief to card holders, now KYC can be done till this date





    – Advertisement –

    The date for KYC of all the members of ration cards has been extended again by two months. KYC of the poor and needy has been made mandatory for the grain scheme.

    The government has issued strict instructions to complete KYC of every unit of cardholders to the extent of 100%. The supply department has now given time till 31 May for this.

    – Advertisement –

    Under the National Food Security Guarantee Act, it is necessary to get KYC done of every unit and member registered in the ration card to prevent irregularities in the food grains being distributed free of cost to the poor and needy. DSO Dinesh Pratap Singh said that so far 73.61 percent KYC has been done in Gonda district, and instructions have been given to the concerned regional officers and supply inspectors to achieve the remaining target.

    There are around five and a half lakh eligible household cardholders and 65 thousand Antyodaya Yojana cardholders in the district. The total number of units in these is 26 lakh 58 thousand. According to the report, till March 5, KYC of around 19 lakh 24 thousand units has been done.

    Difficulty in updating KYC daily

    When the ration dealers are going door to door for KYC, many people are unable to get their thumb impressions. Due to which people are upset. Due to the lack of thumb impressions, the KYC of the cards is not being done. At the same time, the department is taking updates of the KYC being done daily and the ration dealers are being directed to speed up the process.

    – Advertisement –






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  • The top 3 hidden costs of outdated signage technology for SMBs

    A lot of small business costs are impossible to ignore. There’s the money you need to spend developing or sourcing products. Every physical store or restaurant location represents a serious investment in real estate. Any increase in headcount will probably add more digits to your expense sheet. There’s at least one area, though, where you might overlook the impact on your company’s finances.

    Technology is essential to running any small business today, but it has to be current enough to meet employee and customer expectations. For example, investing in Samsung’s digital signage solutions for business means offering exceptional performance while avoiding many common headaches.

    On the flip side, the consequences can be significant when your tools become too old or antiquated for the job. You might not see them coming at first, but over time, these costs can cause your small business expenses to rise unexpectedly, regardless of your budget.

    The best way to get ahead of that challenge is by fully understanding the risks, which include:

    1. Lost revenue

    Imagine a customer walking into a store where most associates are already busy serving others. The customer might need essential information, such as whether a sale is still running for the item they want. A nearby display shows that it is, so the customer goes to the checkout — only to learn that the digital sign they looked at hasn’t been updated. They’ll have to pay full price if they want the item.

    How to plan and deploy direct view LED signage

    Everything you need to know about choosing your LED displays for optimal viewing indoors and out.
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    Now, consider what happens when a customer looks at a digital sign or display and finds nothing but a dark screen. They’ll need to track down an employee who may already be overworked and struggling to manually update or troubleshoot digital signage.

    These kinds of poor customer experiences drive people to shop elsewhere. Since 73% of small businesses say competition is their top macroeconomic stressor, it pays to have technology that informs your customers with accurate information. Samsung VXT offers a simple and streamlined way to create, capture and update content across all your digital signs, kiosks and menu boards. With the right content management system (CMS), you’ll inspire more confidence among your customers and give them one less reason to leave.

    2. Staffing and support costs

    Every minute focused on fixing or updating content adds to the overall cost of digital signage. This is sometimes called “tech debt” because it builds up the longer you put off upgrading or modernizing the tools you use. On average, 65% of businesses spend over $2 million trying to maintain legacy systems. Many small businesses lack the internal IT expertise to handle this work, often relying on costly third-party support services as a result.

    The small business costs don’t end there. Employees who feel continually frustrated by the technology they use at work can become less productive and demoralized. This can contribute to staff turnover, and the cost of replacing them could be high, given that nearly half of U.S. small businesses have just one to four workers.

    Contrast that with providing employees with retail digital signage that transforms visual merchandising and makes it easier to make a sale, LED signage solutions that answer customer FAQs, and Samsung Kiosks that promote self-service. Suddenly, you’re spending less on maintenance while freeing up your team to do their best.

    3. Cybersecurity incident response

    Digital signage for businesses has evolved to the point where a CMS may be integrated with a number of other platforms and applications running on the same network. That means cybercriminals who manage to penetrate a small business’s defenses could tamper with displays as easily as they steal customer data.

    Without protection, for example, digital signs could be fed misleading information or present QR codes that take customers to sites infected with malware. On the backend, a digital signage CMS could provide access to systems where rogue actors cause financial and reputational harm.

    Small businesses can’t afford to deal with data breaches and other security incidents simply because their technology is outdated and more vulnerable. This makes it all the more important that you opt for a CMS like Samsung VXT with built-in security and support for industry standards.

    Take a holistic approach to investing in tech upgrades

    Fortunately, more small businesses are starting to recognize the hidden costs of outdated technology and are investing accordingly. In fact, small businesses are spending more on new technology now than in the past three years.

    Some of that spending will undoubtedly go toward artificial intelligence (AI) solutions and new mobile devices, but digital signage must also stay current. Connect with a trusted technology partner who can help you look beyond the basics of digital signage pricing and optimize your small business costs.

    See the latest VXT product updates and features, and learn how one company seamlessly bridged online and in-person commerce with Samsung displays and VXT software in this case study. Also, discover why Samsung VXT is called an “all-in-one” content management system.