How to Identify Scrips Subject to Physical Settlement?
Understanding whether a scrip is under physical settlement is crucial when trading stock F&O near expiry. We at FYERS follow SEBI rules under which all stock derivatives are mandatorily settled by delivery at expiry. This means if you hold a stock future or an in‑the‑money stock option through expiry, you must deliver or take delivery of shares.
Key Points About Physical Settlement
- Applies to all stock F&O:
As per current SEBI framework, 100% of stock futures and stock options are physically settled at expiry. - Index derivatives are excluded:
Index futures and options like NIFTY or BANKNIFTY are cash settled. - Delivery impact:
If you carry a stock F&O position to expiry without squaring off, be ready to deliver or receive shares as applicable.
Important: Blocking windows for near-month contracts can vary by scrip during expiry week for risk control. Plan positions in advance.
- FYERS Notice Board:
Watch for platform alerts, margin policy updates and special handling notes near expiry. Visit Notice Board - Exchange circulars:
Refer to NSE and BSE circulars for settlement procedures and any changes announced by the exchanges. - Support Portal:
Browse the Derivatives section in the FYERS Support Portal for expiry and delivery FAQs.
What If…
| Scenario | What you can do |
|---|
| You forgot to square off a stock F&O position | Prepare for delivery obligation. Ensure sufficient funds or holdings based on your position type. |
| You are unsure if your contract is physically settled | If it is a stock derivative, it is physically settled. Index derivatives are cash settled. |
| You usually trade only index options | No action is required for settlement type, as index contracts are cash settled. |
| You need help planning around expiry | Check the FYERS Notice Board or contact us for guidance. |
Tip: Always review your margin and holdings ahead of expiry week if you trade stock futures or options.
Last updated: 11 Dec 2025
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