Physical delivery timing on Zerodha

Sun, 21 Jun 2026 00:00:00 +0000

Overview

Physical delivery timing on Zerodha is the schedule on which margins ramp, obligations are computed, and shares and funds move when a stock futures or in-the-money stock option position is carried into expiry under compulsory physical settlement. The delivery margin steps up over the four trading days before expiry, the obligation is fixed after the close of the expiry session, and the actual transfer of shares and cash happens on the second trading day after expiry, Expiry plus 2 (NSE Clearing equity-derivatives settlement framework). Index derivatives are cash settled and carry none of this; only single-stock derivatives are physically settled, a rule in force since the physical settlement of stock F&O regime took effect in October 2019.

How to avoid physical settlement (manual close-out)

Tue, 12 May 2026 00:00:00 +0000

Physical settlement of in-the-money stock options and stock futures on NSE, mandated by SEBI since 2018, creates share delivery and receipt obligations that most retail traders do not want. The practical alternative is to manually close out the position before expiry. This guide explains the close-out deadline, the cost advantage of closing before settlement, and the exact steps to exit cleanly.

For a full explanation of what happens if you allow physical settlement to proceed, see How to physically settle an in-the-money option .

Expiry Week on WebNotes

Physical delivery timing on Zerodha

Overview

How to avoid physical settlement (manual close-out)