SEBI to mandate physical delivery of derivatives from July?

General
1

Does this mean that one cannot do intra-day trade in these derivatives?
Does it mean that a contract whether bought or sold have to be mandatorily kept till expiry?
Please explain the implications of this on the retail intra-day traders in derivatives market?

2

Only at expiry those who keep contracts open without squaring off will have to buy equivalent stock instead of ₹

Other things you can do normally

3

is it same for index options also. like many trades in bank nifty weekly. how will the physical delivery work there as their spot can’t be bought.

4

For index, no change. Cash settlement continues.

Only For Individual stk in the list which Exchanges released, only those stks will go to physical delivery. Others in derivatives remain in cash settlement mode.

1 Like
5

thanks for responding.

6

Can check this circular from SEBI.

7

I don’t think it is just the expiry day physical settlement.
Wht if One trading those stocks doesn’t hv demat acct at all! Wht if after taking position at the start of the month nobody trades that stock in derivatives at all!

I think trading in those stock derivatives will become similar to how the Gold Option trading is gng on right now at MCX.

8

What u say could happen.

I’m just talking about how it happens in the US. Physical settlement for futures for some stks might impact our mkt this way.