Comment on Online pledging of stocks for trading F&O

Hi,

Are the ITM Put options always cash settled?
I had shorted a May SBI 200 PE and was expecting a the stock assignment at the expiry, but instead the position was squared off.
I had enough cash in my account to cover the stock assignment(after the margin amount is reversed).

I had 3,99,982 in Funds and 31,744 in Margin when the position was squared off. The stock assignment requires 4,00,000.

Could you please let me know why the stock was not assigned to me?

Zerodha Support gave the clarification as ” your position was squared off by exchange itself,”, which i don’t understand why.

Thanks
Satya

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