European vs American Options

The distinction is about timing, not geography. American-style options give the holder the flexibility to exercise early, which slightly raises their value; European-style options can be acted on only on the expiry date.

In India, all exchange-traded equity and index options on the NSE are European-style — you cannot exercise early. This simplifies pricing and removes early-assignment risk for writers. Traders who want to exit before expiry simply sell the option back in the market rather than exercising it.