If an F&O position results in taking delivery of the stock, when will the stocks show up in 5Paisa?
When an F&O position results in taking delivery of the stock:
Physical Settlement:
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If you hold a position in any stock F&O contract, at expiry, you will be required
to give or take delivery of the underlying stocks incase if you have marked the
Position for Physical Delivery.
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This physical settlement applies only to stock derivatives. Physical settlement
of index options is not applicable; index contracts are cash-settled only.
Stocks Showing Up in 5Paisa:
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Once the physical settlement process is complete, the stocks will be reflected
in your 5Paisa account.
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The exact timing depends on the settlement cycle and exchange procedures.
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Typically, it happens within a few business days after the expiry date.
When in-the-money (ITM) stock options and futures positions expire, they
undergo physical settlement. If stock delivery is involved, the client's demat
account will receive the stock by the next trading day (T+1 day). For instance,
if the F&O expiry is on Thursday, the delivery will be settled by Friday
evening.
In cases of short delivery by counterparty, the credit of shares may take up to
1 working day after expiry. Initially, the client might receive partial delivery,
with the remaining quantity delivered on T+1. If the exchange fails to procure
shares in the Auction market, the position could be fully or partially
cash-settled.