Blockquote 1. Does Z forcefully square-off, the help article says “may”
Yes, We do forcefully square off as we don’t allow physical delivery
Blockquote 2. If sufficient margin is there, does it mean position can be held for few more days?
Though sufficient margin maintained by client we would forcefully squareoff
Blockquote 3. if held in settlement/delivery period, does it imply it 100% meant for physical settlement even if squared-off in the market? kindly eloborate "Trading is not allowed "
When positions are held during tender period, these positions are assigned randomly for physical delivery. however, if no assignment is done during the tender period then it’s a compulsory assignment of physical delivery on the expiry day.
If you are interested in knowing the MCX delivery process check this link