If I sell put of stock i.e. PE600 and the stock dropped to 580 but I want to take delivery of the stock at this price. So one option is that I will close my short position and buy stock from the market at 580 manually but If I have cash in my account and do not close my short position then what will happen. Will exchange delivery stock to my Demat account or Just square off my short position in loss?

If the answer to my question is YES, and stock will get delivered to my Demat account then how this process managed when put is sold for NIFTY or BANKNIFTY.