(1) No margins shall be required to be deposited by Writers of Scrip-Covered Call Options.
(2) The Writer of a Scrip-Covered Call Option shall submit a request to the CDP through the Trading Member on the prescribed form for a transfer of the underlying securities from the Writer's Securities Account to a Securities Account designated by the Trading Member as security for his obligation to deliver the underlying securities upon an exercise of the Scrip-Covered Call Option.
(3) The underlying securities shall be released and returned to the Securities Account of the Scrip-Covered Call Option Writer upon request by the said Writer and upon confirmation and endorsement by the Trading Member to the OCC that:—
(a) the Scrip-Covered Call Option has expired, or
(b) the short position created by the Scrip-Covered Call Option has been eliminated by a closing purchase transaction, or
(c) subject to Rule 18.5.8, the said Writer has adequate margins deposited with the Trading Member or deposits additional margins in respect of the said Option in lieu of the underlying securities to be released.
(4) The Writer shall be entitled to all distributions accruing on the underlying securities.
(5) Trading Members shall be authorised and entitled to transfer the underlying securities transferred to its Securities Account in accordance with Rule 18.8.2(2) to the OCC subject to the Regulations.