Process for Physical Delivery in F&O

Where do I need to keep the required delivery obligation in the form of Shares/ funds required for Physical settlement?

You will have to allocate the full contract value in case of buy/shares receivable positions (Long Future, Long Call and Short Put) in the F&O segment Limits allocation. In case of sell/shares payable positions (Sell Future, Sell Call and Long Put) you will have to keep sufficient free shares in the demat allocation.