Risk containment for stock options: portfolio based margining and exposure limits to control member risk in trading. Risk containment for exchange traded stock options requires SEBI approval, premium settled American style contracts with specified size, maturity and strikes, and a portfolio based margining regime where Initial Margin equals the Worst Scenario Loss computed from multi scenario valuations; a Short Option Minimum Margin applies if that loss is lower, Net Option Value adjusts liquid net worth, premiums are cash settled on T+1, and exposure and market wide position limits and eligibility criteria for underlying stocks are prescribed.
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Provisions expressly mentioned in the judgment/order text.
Risk containment for stock options: portfolio based margining and exposure limits to control member risk in trading.
Risk containment for exchange traded stock options requires SEBI approval, premium settled American style contracts with specified size, maturity and strikes, and a portfolio based margining regime where Initial Margin equals the Worst Scenario Loss computed from multi scenario valuations; a Short Option Minimum Margin applies if that loss is lower, Net Option Value adjusts liquid net worth, premiums are cash settled on T+1, and exposure and market wide position limits and eligibility criteria for underlying stocks are prescribed.
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