Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019

I bought Hindalco 185 CE 7000 qty a few days ago (Current price 116 rs ) and now current my position is OTM.

I received a message regarding physical settlement

I found following statement above

OTM (Out of the money) options are those strikes that are above the final settlement price for calls and below the final settlement price for puts. There won’t be any delivery obligation if your call or put option expires out of the money(OTM).

What does this indicate ?

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