TaxTMI 
TaxTMI 
Review of Framework for Stocks in Derivatives Segment
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....ed 'Revision of Eligibility Criteria for Stocks in Derivatives Segment' and circular CIR/DNPD/4/2010 dated July 15, 2010 captioned 'Physical Settlement of Stock Derivatives'. 2. Discussion Paper/public consultation on Growth and Development of Derivative Market in India With a view to improve market integrity and provide better alignment of cash and derivatives segment, SEBI published discussion....
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.... that physical settlement of stock derivatives shall be made mandatory in a phased/calibrated manner. Enhanced eligibility criteria for introduction of stocks in Derivatives Segment ('Enhanced criteria') 4. A stock, on which option and future contracts are proposed to be introduced, shall conform to the following broad eligibility criteria: - (i) The stock shall be chosen from amongst the top ....
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.... to satisfy any of the enhanced eligibility criteria for a continuous period of three months, shall move from cash settlement to physical settlement. After moving to physical settlement, if such stocks do not meet any of the eligibility criteria (specified vide circular CIR/DNPD/3/2012 dated July 23, 2012) for a continuous period of three months, then they shall exit from derivatives segment. 6. ....
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....dures of the cash segment shall be applicable when a stock derivatives devolves into physical settlement. 9. Stock which meet the enhanced eligibility criteria shall also move to physical settlement albeit in a phased/calibrated manner. 10. The other provisions regarding single stock derivatives shall remain as specified in SEBI circulars CIR/DNPD/3/2012 dated July 23, 2012 and CIR/DNPD/4/2010 d....