The Securities Exchange Board of India vide circular dated January 03, 2022 has modified the exercise mechanism for options on Commodity Futures. All In the money (ITM) option contracts shall be exercised automatically, unless ‘contrary instruction’ has been given by long position holders of such contracts for not doing so. All Out of the money (OTM) option contracts shall expire worthless. All exercised contracts within an option series shall be assigned to short
positions in that series in a fair and non-preferential manner.
