Important Update for Clients Holding Stock F&O Calendar Spread Positions as on 26 May 2026

As per revised exchange guidelines, with effect from the monthly expiry on 26 May 2026, calendar spread margin benefit on Stock Futures & Options will be available only up to one day prior to expiry.

Clients holding an open calendar spread position with one of the legs in May expiry may see an increase in margin requirement at market open on 26 May 2026. If sufficient margin is not maintained, this may result in a margin shortfall and the position may be liquidated.

The increase in margin requirement may appear as a negative value under the ‘Margin from Other Sources’ in Funds section of the Kotak Neo app/web.

Clients who roll over their calendar spread position to a future expiry or square off their May expiry position on 26 May 2026, may contact Customer Service or their dealer to adjust the margin utilisation.