Net settlement of cash and F&O upon expiry enables merged settlement, reducing delivery obligations and post expiry margin needs. Net Settlement requires that cash market settlement obligations and physical settlement obligations of expiring stock derivatives be settled on a net basis, producing a single net obligation where eligible. Netting is available only when trading and clearing for cash and F&O are through the same TM CM combination; institutional investors and transactions cleared through different clearing members or clearing corporations are excluded. Statutory levies such as Securities Transaction Tax and stamp duty remain computed and reported segment wise. Clearing corporations retain segment wise default waterfalls and compute default losses pro rata by segment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Net settlement of cash and F&O upon expiry enables merged settlement, reducing delivery obligations and post expiry margin needs.
Net Settlement requires that cash market settlement obligations and physical settlement obligations of expiring stock derivatives be settled on a net basis, producing a single net obligation where eligible. Netting is available only when trading and clearing for cash and F&O are through the same TM CM combination; institutional investors and transactions cleared through different clearing members or clearing corporations are excluded. Statutory levies such as Securities Transaction Tax and stamp duty remain computed and reported segment wise. Clearing corporations retain segment wise default waterfalls and compute default losses pro rata by segment.
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