Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
06 Jan 2022, 06:53 PM
Hey Srinivas, for physical settlement obligation to be netted-off both the positions have to expire ITM. If one position expires ITM and other OTM, you will have to give or take delivery of underlying shares for the position that expired ITM. You can check out the “Spread and covered contracts” section that explains net-off scenarios.