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 .

Manual Close-Out on WebNotes

How to avoid physical settlement (manual close-out)