How should I apply for physical settlement?

To apply for physical settlement, you simply need to hold your derivative position (futures or in-the-money options) until expiry. If your broker and the exchange support physical delivery (like NSE in India), the position will be automatically settled physically. 

This means: 

• Buyers must ensure sufficient funds to receive the underlying asset.
• Sellers must have the underlying asset in their Demat account to deliver.

Important requirements:

• You don’t square off the position.
• You meet margin/funding requirements.
• Your broker hasn’t set a special cutoff (check with them).