Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
25 Jan 2022, 11:43 AM
Hey Kiran, the margin requirement for your Put Option will increase as it becomes ITM as exchange blocks physical delivery margins from expiry minus 4 days. There is no additional margin requirement if the position is OTM.
It’ll not be auto squared-off immediately and you can exit the position whenever you want to before market close in expiry day. However, if you’re not maintaining sufficient margins, your position will be squared-off at the discretion of RMS.
You won’t be able to take fresh long positions in Stock Options on last two days of expiry. You can learn more about physical settlement here.