Process for Physical Delivery in F&O

What happens on the day of expiry for F&O stock contracts?

You can opt for one of the below options –

• Rollover your position to next month’s contracts (for Futures contract only) till 2:30 pm.
• Square off your open positions in near month contracts before expiry till cutoff time for Options at 12:00 pm & remaining F&O positions at 2:30 pm.
• Cut- off time for opting physical delivery is till 11:00 am.

What happens if the position is not squared off on the expiry day:

If for some reason your position couldn’t be squared off due to lack of liquidity, then In-the-money (ITM) option contract will be assigned to you.

If you are holding long call options and it expires the In-the-money (ITM), the contract will be exercised to you and if you don’t have funds to buy the shares, ICICIdirect will be forced to buy the stock on your behalf and sell next day. The equivalent profit or loss along with statutory charges will be passed to your account.

If you are holding long put options and the contract expires in-the-money (ITM), you will have to have shares to give delivery. In case the shares are not there in your demat account, it will go for auction. ICICIdirect will attempt to arrange the stock from If any profit, that also will be credited to your account.