We’ve explained the process of physical settlement in this post on Z-Connect. To explain in brief, stock derivatives which were cash-settled(based on the close price on the expiry), will now be physically settled. If you have a long call, short put or long future, you will have to take delivery of the stocks and give delivery of stocks, if you have short call, long put or short future position.
@Joe_Maxpayne, as much as I understand your concern about not having to hold the position till expiry, due to physical delivery, the broker has to close your position early if you dont have the stocks(since you have a long put position) in your demat account to deliver to the counterparty.
It is very difficult to find liquidity in ITM physically delivered contracts as the expiry approaches or even worse if the contract ends up being physically settled, since you don’t have the stocks, it will end up in short delivery auction, where you could be charged upto 20% of the contract value. Read up on consequences of short delivery here.