Process for Physical Delivery in F&O

How does Physical Settlement work?

In case a trader has an open position in a Stock Futures contract & In-The-Money Stock Options that has not been squared off on expiry date, these contracts would have to be physically settled. The trader thus gives or receives delivery of the stocks which were the underlying to settle the transaction. Index based F&O contracts continue to be settled in cash whereas all Stocks in F&O contracts are settled physically.

The physical settlement takes place on the following price - Closing Price of the Expiry Day* Open Position Quantity.