Does Kotak Securities allow (MCX) long option positions to devolve into futures on expiry day if they expire In-the-Money?

No. Kotak Securities liquidates all long option positions on expiry day on a best-effort basis, subject to market liquidity.

1. NRML positions are squared off after 10:30 PM.
2. MIS positions are squared off after 11:00 PM.

In rare situations where sufficient liquidity is not available, positions may remain open and could be carried forward to the next trading day, which may result in devolvement into a futures contract. Alternatively, Kotak Securities may instruct the exchange to not exercise long options that remain open at expiry, which may result in the position being settled at zero value, thereby leading to a loss of the total premium paid.