Capital markets regulator Sebi on Wednesday introduced the mechanism of net settlement of cash and Futures & Options (F&O) segment upon expiry of stock derivatives. The move is aimed at providing better alignment of cash and derivatives segment, mitigation of price risk in certain cases and netting efficiencies for market participants, the Securities and Exchange Board of India (Sebi) said in a circular. Under the mechanism, the obligations arising out of cash segment settlement and physical settlement of F&O segments, upon expiry of stock derivatives, would be settled on a net basis as against the current approach of settling such obligations separately. The benefit of netting (merged settlements) would be available to investors who trade and clear through the same TM-CM (trading member-clearing member) combination in cash and F&O segment. However, investors whose TM clears trades through different CM/Clearing Corporation (CC) will not be able to avail the benefit of .
Have sufficient capital as buffer to be able to meet additional margin requirements
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According to Nandish Shah, the short term trend is bullish as the stock price is closed above all important short- term moving averages.
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The peak margin norms have been implemented in phases since December 2020
The margin requirement for the futures segment has risen substantially after the introduction of peak margin norms last year
A whopping increase in FPI inflows also boosted risk appetite, traders said. Foreign institutional investors purchased shares worth a net Rs 28,739.17 crore on Wednesday, according to exchange data
Retail participation in the F&O segment - especially that for options writers on expiry days - has already been impacted owing to these norms, which became effective from December 1
The broader markets, however, bucked the trend and ended higher today. The S&P BSE MidCap and SmallCap indices added 0.7 per cent and 0.4 per cent, respectively at close
Retail participation slides 15-20% on weekly expiry days
Primary trend of the Bharat Forge stock is positive where its price is trading above all important moving averages