How to physically settle an in-the-money option

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

Physical settlement means that an in-the-money stock option or stock futures contract, if held to expiry on NSE, results in the actual delivery of the underlying shares rather than a cash payment of the difference between the option price and the settlement price. SEBI mandated physical settlement for all NSE stock derivatives via a circular in April 2018. This guide explains what happens, what your obligations are, how to confirm settlement, and what costs arise.

ITM Option on WebNotes

How to physically settle an in-the-money option