Cash settlement still means the folks on the other side of the trade might get screwed if their positions don’t end in give or take delivery, if they have taken positions with the intent to do so.
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Hi Nithin,
Thank you
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Hi Nithin,
Any chance that we will shift to cash settlement in near future for stock options?? As all exchanges do world wide.
Do you see or guess that it might happen in near future.
Stocks that are moving are moving the way they want and I see no difference in either settlement.
I know with removal of dne it’s becoming risker for broking companies too…
expect for retailers which are losing for not able to buy on last days where premiums are low.
This month as an example abcap.PFC , rec,mfsl moved superbly.
Most of ce which were at 0.05 turned to be at 1 re by noon.
We are missing opportunity.
Sebi might argue we encourage investing. But what about many noted companies that turned borad and retailers lost. The list is long.
Thanks.
This is unlikely to change anymore. Since there is a risk here, one of the possible solutions to mitigate it is to have an after-market extended session in the underlying after 3.30 pm when any give-or-take delivery positions without customers having sufficient stocks or cash respectively can be squared off.
Thank you Nithin. Let’s hope for that atleast.