Physical settlement of stock derivatives : no need to panic

Hi My Friend Having IDBI call that is 100 CE @0.15 and there is no buyer to settle this as there is no volume for this option because this is far away and call is out the money .
Now IDBI Bank Falls in new pre settlement condition as he is not able to sell his contract , how can get out of this trap , Please suggest.

This Equity derivative physical settlement process is on similar lines with what MCX follows for settlement of Commodity Options except that it considers Futures as underlying.
I believe arbitrage opportunities might arise while settling Equity Futures……

what will be the fate of OTM contracts? as these contracts are not exercised…

Expire worthless.

OTM will be expired worthless, later if it turns out to ITM before expiry then hope some buyers will come and then you can exit but just monitor that position.

@nithin Requesting someone from Zerodha to please clarify this as there is no definitive answer on this in the Zerodha’s policy that’s been put up on their site: I am currently having short positions on several OTM options. Will the short OTM options also be squared off automatically on Monday, although these are likely to expire worthless on expiry day?

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If it is sufficiently OTM and there is sufficient margin (the requesite SPAN + Exposure) in your account we will let it be.

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