NSE withdrawal of DNE

[rshanker.srivastava]

why IS DNE withdrawn? It will affect traders with less capital

[Meher_Smaran]

Hi @rshanker.srivastava

This was explained here

NSE has reintroduced DNE (Do Not Exercise) form April 28th 2022

The DNE option has been removed because of SEBI and not due to exchanges. So BSE isn’t going to cash settlement. Only the index derivatives on BSE are cash-settled, but so are on NSE. The issue with DNE is that everyone with a strategy involving give-or-take delivery can get screwed if suddenly some positions don’t lead to give-or-take delivery because option buyers opted for DNE. Unlikely that the DNE option will be reintroduced. Given that now the settlement of stocks and stock derivatives …

Net settlement of trades across cash segment and F&O segment upon expiry of stock derivatives

In November 2022, SEBI issued a circular introducing the net settlement of positions across the cash segment and F&O segment upon the expiry of stock F&O positions. This will be applicable from March 2023 expiry as per the announcement by NSE. From March 2023 expiry onwards, any obligations in cash segment settlement and physical settlement of the F&O segment, upon expiry of stock F&O contracts, will be settled on a net basis as against the current approach where obligations are settled separat…