What happens to OTM positions marked for physical delivery?

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• Will physical delivery positions be squared off automatically?

  No, contracts marked for physical delivery will not be squared off automatically.

• Is there any change in the margin requirement for physical delivery?

  Yes, the system will now charge the appropriate physical delivery margin requirement for all contracts marked for physical delivery, including OTM contracts.

• What are the new major changes in the physical delivery process?

  Previously, only in-the-money (ITM) contracts were eligible for physical delivery marking. Now, we allow contracts up to 5% out-of-the-money (OTM) to be marked for physical delivery.

• What are the risks associated with the physical delivery of stock Futures & Options (F&O)?

  In the Indian capital markets, the physical delivery of stock derivatives, particularly stock futures and in-the-money stock options at expiry, introduces significant systemic risks. Here's a simplified breakdown of the implications: 1. Stock Futures ...

• What happens incase of failed delivery attempt?

  Physical Delivery of your accumulated gold through 5paisa has been suspended. In case your delivery does not go through, the logistics partner will reattempt the delivery twice. If the delivery still fails, your gold balance will be transferred back ...