The National Stock Exchange has discontinued the 'do not exercise' facility available for stock options on expiry date. In a circular dated 20 January, the exchange had informed that the facility would be withdrawn effective from March 2023 expiry of F&O contracts.
'Do Not Exercise' facility, that was re-introduced in 2022, allowed a trader to instruct the broker if he/she does not wish to exercise the right to give or receive deliveries. Now that the facility has been removed, this shall result in compulsory physical delivery of shares if an option contract becomes-in-the-money (ITM), and that contract has not been squared off on expiry day.
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