Removal of DNE option in case of option trading

Like in India we follow the European options system where the option buyer has the right but not the obligation to execute the ITM option only after the expiration… I.e the ITM option buyer as the choice to execute or not to execute the ITM options even after the expiration…
So do sebi really wave the option of DNE(no not exercise) and made it mandetary for the itm stock options buyers to execute the option if he/she didnt squareoff his/her position before the expiry??

What do you think guys?
@ShubhS9 @Gautam

DNE doesn’t exist for stock f&o anymore and they are physically settled. Only index f&o are cash settled now.

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Indeed, now when you are buying an “option”; you are not “going to really have any option” - other than the option of selling that “option” if the seller “grants that option” by buying it from you :joy:

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@nithin Whats your view on this and systematic risk around it. Also what I am not getting is physical settlement is itroduced long before and in case of ITM options both call /put buyers and sellers have to manadotorily participate in it. so whats the buzz about the DNE modification from sebi, and even I didn’t knew about any such new rule till reading this article.

My views are here.

My instincts tell me that the DNE option will be brought back.

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