Physical settlement of ITM stock options – How is the penalty amount calculated?

Hello, I’m curious in regards to the worst case state of affairs of bodily settlement of inventory choices. Suppose I purchase a name choice which finally ends up ITM on the time of expiry, however I’m unable to shut my place on account of no quantity at that strike worth over the last week. I do know I can promote similar quantity of ITM name choice to cancel off the bodily supply, however let’s think about I forgot and now I’ve to take the bodily supply.

Assume I purchased 5L price of name choices that find yourself ITM. Now the underlying worth of that is 2Cr. on the time of expiry. Zerodha will begin asking for margin from E-4 Day onwards (10% of VaR + ELM +Adhoc margins) and so forth rising it on a regular basis. If I don’t present that margin and this goes on until expiry day then –

Will zerodha calculate margin shortfall penalty for every day until expiry? And what occurs after expiry? What would be the approx. penalty quantity that I might be charged within the above case?

I learn that their RMS crew will promote these shares. If public sale occurs, how will the revenue from that commerce settled?

I suppose the almost certainly factor to occur might be that the RMS crew will promote the illiquid choice at a a lot lower cost than the honest worth.

Besides the final half-hour of expiry day, when I’ve truly skilled liquidity drying up fully, normally you can find a purchaser at some worth.