 "The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai (Photo: Reuters)")
The Securities and Exchange Board of India (Sebi) on Thursday sought market feedback on moving to a physical-settlement system in stock derivatives. Currently, all derivatives contracts are cash-settled.
“Market participants are requested to provide their comments on whether there is a need to have compulsory physical settlement in stock derivatives contracts, and whether physical settlement should be done in a phased manner starting with stock options followed by stock futures,” the capital markets regulator said in a discussion paper.
In the past, Sebi, through various committees, and even stock exchanges, has tried implementation of physical settlement in stock derivatives. However,
