On the expiry day, all stock option positions placed as CNC are automatically converted to MIS.

This is done to ensure that these positions are squared off before market close and not carried forward for physical settlement.

Earlier, exchanges allowed brokers to mark contracts under a “Do Not Exercise” option to avoid unintended settlement. However, this facility has now been withdrawn.

As a result, to protect clients from the risk of physical delivery obligations, Navia converts all CNC stock option positions into MIS on expiry day. 

This ensures your positions are squared off on time and you are not exposed to unwanted settlement risk.