Announcements

As per the SEBI mandate, physical settlement is compulsory if a trader holds a position in any Stock F&O contracts on the expiry date.

What is Physical Settlement? In a Stock F&O contract, when an open position is not squared off by its expiry date, Physical Settlement takes place. This implies that a trader must physically deliver or take delivery of Stocks to settle open transactions, rather than settling them with cash.

Long positions of 1 lot of Reliance, 250 quantity at ₹2000, i.e. ₹5 lakh contract value. F&O = 20% charges, i.e. ₹1,00,000. This means you are required to give ₹1 lakh. But if you opt for physical settlement, you’ll have to provide the complete contract value of ₹5 lakh.

Short positions of 1 lot Reliance 250 quantity at ₹2000, i.e. ₹5 lakh contract value. F&O = 20% charges, i.e. ₹1,00,000. This means you are required to give ₹1 lakh. However, if you opt for physical settlement, you must hold 250 shares of Reliance in your Holdings and maintain a ₹1 lakh margin until the expiry date.

Long - 1 lot of Reliance, 250 quantity for a strike price of ₹2000 Call (CE) Options. If the underlying price of Reliance is greater than the strike price of ₹2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to maintain a free ledger balance of ₹5 Lakh in your account; otherwise, physical settlement will not be done.

Long - 1 lot of Reliance, 250 quantity for Strike price of ₹2000 Put (PE) Options. If the underlying price of Reliance is less than the strike price of ₹2000, then the contract is said to be ITM (In-The-Money). If you wish to go for physical settlement, you need to provide the Stocks (shares) equal to the lot quantity positioned to be available in the Demat account; otherwise, physical settlement will not be done.

Please note --

To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:

Your position will automatically be squared off on expiry day at 12:00 PM in case:

Delivery margins would be applicable as per Exchange norms on all the existing long ITM (In The Money) stock option positions in a staggered manner, as explained below:

*If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Sunday, 25 January 2026.

In the case of spread contracts, you are advised to provide margins for both legs since the risk of one leg being squared off by you at any time would result in the physical settlement of the other leg.

Since there is a substantial increase in effort and risk to settle these F&O positions resulting in physical delivery, if F&O positions result in physical delivery, brokerage will be 0.25% of the physically settled value. For all the netted-off positions, brokerage will be 0.1% of the physically settled value. All physically settled contracts (Futures & Options) will also carry an applicable Exchange charge.

And that’s all. Keep a watchful eye on this page for more updates from Upstox!

Please note that all ITM, ATM & CTM CRUDEOIL and CRUDEOILMINI option contracts expiring today, 14th January 2026, will be converted into futures contracts. You can create fresh positions only until 9 PM today.

To avoid the square-off of your positions, please ensure you maintain sufficient margin for the futures contracts before 9 PM today if you have any open Positions.

On account of municipal corporation elections in Maharashtra, there will be a trading holiday on Thursday, 15 Jan 2026.

If you have any queries, you can raise a ticket on the Upstox app or the web platform.

On Thursday, 1 January 2026 (New Year’s Day), MCX will be open only for the morning session.

Please plan your trades accordingly.

Every 3 months, SEBI makes it compulsory for brokers to return any unused money in a client’s trading account to their bank account. This is called Quarterly Fund Settlement.

So, on Saturday, 3 January 2026, any unused funds in your Upstox account will be sent to your registered bank account. You can check your bank statement to confirm the refund.

👉 Want your funds to come back automatically into your Upstox account on Monday? Just set up a ‘Fund Reversal’ mandate from the Funds tab in the app.

⚠️ If you don’t, your account balance may show ₹0 on Monday, and you’ll need to add funds again before trading.

👉For NEFT/RTGS transfers, please add Upstox as a beneficiary by Friday, 2 January (details below):

⏳ Due to high transaction volumes, fund transfers could take up to 2 working days. Don’t worry, this process won't affect your current orders, holdings, or positions.