Tuesday, December 23, 2025 6:09 pm
Please note, the following securities will be removed from SEBI’s list of approved securities for Margin Pledge.
As a result, you will not receive margins for F&O trading against these scrips starting Wednesday, 31 Dec 2025: Click here for scrip details
NOTE: If you have pledged any of the above, starting 31 Dec 2025, you will not receive margins pledge benefit and you will be required to fulfil the full margin requirement. If you’re unable to pay, we will have to automatically square off your positions to recover the amount by 1 Jan 2026.
We have attached a list of these stocks for your reference.
Please review your portfolio and make necessary adjustments to avoid any inconvenience. Thank you for your understanding and cooperation.
Tuesday, December 23, 2025 12:24 pm
Please note that all ITM, ATM & CTM NATURALGAS and NATURALGASMINI option contracts expiring today, 23rd December 2025, 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.
Friday, December 19, 2025 1:50 pm
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.
Examples of physical settlement:
Futures
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.
Options
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 --
- Short ITM PE Options would be treated the same as Long ITM CE Options. A free ledger balance equal to the contract value is to be maintained.
- Short ITM CE Options would be treated the same as Long ITM PE options. Your Holdings should have the lot quantity needed for physical settlement in your Demat account.
What is the process for Physical Settlement on Upstox?
To opt for physical settlement on Upstox, you need to provide your consent first and here are the details for the same:
- To provide your consent for physical settlement of open Stock F&O contract(s) with December 2025 expiry, visit the ‘Profile’ section on your Upstox account on our App / Web and consent from here before EOD on Sunday, 28 December 2025.
- Based on your consent, Upstox will evaluate whether your position qualifies for physical settlements and if there are sufficient ledger balances/holdings (whichever is applicable) available.
- Kindly plan your trades, keeping in mind that you will not be able to trade in fresh positions in the current December 2025 expiry of F&O contracts from Monday, 29 December 2025 onwards.
- Correspondingly, position conversion(s) on carry forward of any stock futures positions shall also not be permitted.
What other impact could this have on your positions?
Your position will automatically be squared off on expiry day at 12:00 PM in case:
- You have not provided your consent for physical settlement
- You provided your consent for physical settlement and do not have Ledger Value (equal to contract value) / holdings available for the physical settlement of your positions.
- In case funds/holdings are not available for all the open positions, we will execute square-offs for all the positions. Thus, no partial funds/holdings evaluation for the expiring positions will be considered by our team.
What else to keep in mind?
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:x`
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10% of delivery margins computed on expiry -4 days EOD (Wednesday)
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25% of delivery margins computed on expiry -3 days EOD (Thursday)
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45% of delivery margins computed on expiry -2 days EOD (Friday)*
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70% of delivery margins computed on expiry -1 day EOD (Monday)*
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To avoid margin shortages, Upstox would be blocking such (above-mentioned) delivery margin from the Beginning of the Day (BOD) instead of the End of the Day (EOD).
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If the positions are not squared off for any reason (e.g. non-liquidity), then the contract would have to be settled physically, and you would be liable to pay the entire settlement amount.
*If you have opted for physical settlement, you would be required to fulfil the entire funds (contract value) / holdings requirement by EOD on Sunday, 28 December 2025.
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.
Brokerage in Physical settlement:
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!
Tuesday, December 16, 2025 3:07 pm
Please note that all ITM, ATM & CTM CRUDEOIL and CRUDEOILMINI option contracts expiring today, 16th December 2025, 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.
Monday, December 8, 2025 9:12 pm
Starting 8 December 2025, there’s a change in how exposure (Open Interest) will be calculated for F&O stocks that enter the Ban Period.
What’s new?
- Earlier, exposure was measured only by counting contracts at the end of day.
- Now, exposure will be calculated more accurately using Future Equivalent Open Interest (FutEq OI)
- This considers both Futures and Options together using delta
- Compliance checks will now happen multiple times during the day, not just at the close
What it means for you:
If a stock goes into a Ban Period:
- No new positions or rollovers allowed
- You can square off existing positions
- If only one side of a hedge is squared off which results in an increase in FutEqOI, your pending orders may be cancelled, and positions may be auto-squared off after 2 PM (as per risk policy).
What penalties might you face:
Any increase in exposure beyond permitted levels in the Ban Period may attract penalties, recoverable from the client.
Example:
Let’s say you have positions in a stock that suddenly enters the Ban Period.
Your positions:
- 2 lots Buy: Futures (January expiry)
- 2 lots Buy: Call Options (January expiry)
- 2 lots Sell: Futures (February expiry)
On the next day (T+1), the stock enters the Ban Period.
What happens now?
- You cannot take any new trades in this stock
- You can square off (close) your existing positions
- But if you close only one part (for example, you square off January Futures but keep February Futures open), your exposure may increase
If exposure increases:
- Your pending orders in that stock may be cancelled after 2 PM.
- Positions may be auto square off as per risk rules.
- You may also face penalties, which can be recovered from you.
Why does this matter?
Since exposure is calculated on a delta-based basis, any change in one part of a hedge may affect your overall exposure.
Note: This example is only to help you understand how the new rule works.
For more details, please refer to the circular here.