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I had a call option buying of 17 lots of indusindbank 860ce 31.12.2020 expiry. on 29.12.2000.The call went upto 62 rhe next day....on 29.12.2000 my broker icici securities at 3.01pm sold 15 lots at market rate at an average price of 20.75 without my consent no phone no email.The next day when i saw the contract note i nearly had a heart attack. when i contacted the customer care they professionally replied i didnt have the necessary additional margin and i have not read the FAQ although i had balance of 2 lacs."The obligation of the buyer of a call or put option is restricted to my premium amount". Where comes the question of additional margin? I have filed a complaint with NSE yesterday. What are my chances to get back nearly 5 Lacs. Pl clarify

Sir, I sympathetically note your position. Please read the obligation when one buys a call or put and also when one sells a call or put. In Zerodha, you can read the procedure on compulsory delivery obligation and the money required to be kept in one's account. Please note even though you have bought call option by paying the premium full amount, before expiry due to delivery obligation (if you buy call, you have to deliver that much number of stock as per the lot size)and your broker would have checked whether you hold margin even if you had only bought call option by paying premium, you should hold necessary margin to receive the number of shares multiplied into lot size (850x18 lots) and since the money available in your account is only for meeting the obligation for 1 lot, the rest of the lots were sold. Buying call or put option is also having risk, when the same is not squired off prior to expiry. If you wanted to make all the lots (18) not to be squared off, then you should have that much number of shares in your account and also to meet span + delivery margin to meet delivery for all 18 lots. Many people while start trading, are not familiar with the buy or sell obligation of stock options. Only in the case of index options like Nifty, Bank Nifty, Fin nifty, options left to expire are cash settled. Even in these case, the buyer of call or put, will have to meet STT charges, which may be more than the profit in many cases. Hence, it is better to squre off even index options prior to expiry. Sir, please google to read more details on compulsory delivery of stock options. Thanks and regards.

Hello Mr. GANESAN same Condition, this has happened even with me, They're Creating a new fresh position of call or put even If you square off the position, Which is purely inappropriate, and by this if your position will be - 1 PE short which attracts FUTURES MARGIN and instead they charge you with penalty