Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
27 Jan 2023, 05:22 PM
Hi Sathish, this is right. If the option is CTM, the exchanges have provided a do not exercise facility, we will be using this option on expiry day in case the cash balance and the intrinsic value of the option contract is less than 50% of the contract value. However, if the option is not CTM, then it will be physically settled and you will have to give/take delivery of underlying shares.