What will happen if I don't have the shares in my demat account at the time of F&O physical settlement?
If you don’t hold the shares in your demat account, you will not be able to deliver them towards the physical delivery obligation, resulting in Short Delivery. This typically happens when intraday short positions can not be closed due to illiquidity or due to stocks hitting an upper circuit.
Applicable auction penalties from the exchange will be charged to your account toward the shortfall.
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