For In-The-Money (ITM) options, the Exchange imposes physical delivery margins starting four days prior to expiration to ensure clients meet their physical delivery obligations. These margins are progressively increased as expiration approaches and are calculated based on:

• Value-at-Risk (VaR)
• Expected Loss Margin (ELM)
• Ad-hoc Margins (if applicable)

The margin requirements for ITM options are as follows:

Penalty Imposition: A penalty will be levied for the shortfall in margin.  

Steps to Avoid Penalties:

1. Ensure adequate funds are maintained as margins increase progressively toward expiration.
2. Act promptly on margin calls or updates sent through Margin Statement
3. Avoid last-minute fund transfers to prevent non-compliance or penalties.

Steps to take Physical Delivery of Shares  :

1) Ensure 100% of the Notional Contract Value is maintained in the account 

2) To ensure that you have an active Demat account with Navia 

3) Communicate your intent to take Physical Delivery by Raising a a Ticket here before 9.30 AM on the Expiry Day.

4) A Brokerage of 0.50% will be applicable on the value of Delivered shares  

Navia may square off your open positions if margin obligations are not met within the stipulated timeframe. You will be solely responsible for any losses arising from such square-offs. In cases where Navia’s Risk Management Team (RMS) is unable to square off your positions due to margin shortfall or any other reason, the position may result in compulsory physical delivery. All costs, obligations, and risks associated with such physical delivery will be borne by you.