Physical Delivery in F&O

Will STT charges be levied in the process of settlement/exercise of F&O by way of physical delivery?

Yes, STT charges would apply as applicable for Physical Settlement and may change from time to time. NSE has required brokers to levy a STT @ 0.10% (i.e. the rate applicable for taxable securities transaction settled by actual delivery in the Capital Market segment) on the settlement price to be paid by the purchaser of the futures contract which are settled by way of physical delivery.