Update on Physical Settlement in Stock F&O Contracts

We’d like to share an important update regarding physical settlement in Stock F&O contracts.

Starting from the upcoming monthly expiry (and continuing for all future expiries), if your open stock F&O positions result in physical delivery, you’ll need to keep the full contract value available in your trading ledger before expiry.

So, what does this mean for you?

If you’re holding:

• Stock Futures positions, or

• In-the-money (ITM) stock options that can lead to delivery

-you must ensure that 100% of the contract value is available in your ledger in advance.

What happens if funds aren’t available?

If the required funds are not maintained:

• The position will be squared off by our Risk Management System (RMS)

• Square-off will happen on the trading day just before expiry

• Any losses or charges from such square-off will be borne by you

To avoid this, it’s important to plan ahead.

What should you do?

• Review your open F&O positions well before expiry

• Arrange full funds if you intend to take or give delivery

• Make sure the funds are available during market hours on the day prior to expiry

Please note that if adequate funds are not available and no prior intimation is given, positions may be squared off without further notice.

This update is in line with regulatory guidelines and prudent risk management practices.