At Groww, we mainly settle Futures & Options (F&O) contracts in cash when they expire. This means any profits or losses from your F&O positions are usually settled directly in cash, so you don't receive or deliver actual shares.

However, some F&O contracts, like stock futures and stock options that expire In-The-Money (ITM), must be settled physically according to exchange rules. If you hold such a contract until it expires, you may need to receive shares into your Demat account or deliver shares from it.

Key Points of Groww's Physical Settlement Policy:

Default is Cash Settlement: Most F&O positions are settled in cash.
Physical Settlement for Stock F&O: Stock Futures or ITM Stock Options held until expiry will be settled physically.
Margin Requirements: It's important to maintain enough margin in your Groww account to ensure smooth physical settlement and avoid penalties, especially as expiry approaches.
Increased Margins: Margin requirements increase significantly for positions that might lead to physical settlement, like long ITM options, in the days leading up to expiry. This ensures you have enough funds to cover the full value of the shares being delivered or received.
Automatic Square-off: If you don’t maintain the required margins for physical settlement, Groww may automatically square off your open positions to prevent potential shortfalls or penalties.
Requesting Physical Settlement: While cash is the default, for contracts requiring physical settlement or if you want a specific physical delivery (when allowed), you may need to request it through Groww and ensure you have the necessary funds or shares.

For a detailed understanding of our risk management policies, including margin requirements for physical settlement, please refer to Point #8 under the ‘Futures & Options’ section on our Risk Policy page.

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