Physical Settlement of Stock Derivatives

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....es This is in continuation of SEBI Circular No. SMDRP/DC/CIR- 7/01 dated June 20, 2001 and Circular No. SMDRP/DC/CIR- 10/01 dated November 2, 2001 regarding settlement of stock options and stock futures contracts respectively. 2. Based on the recommendations of the Derivatives Market Review Committee and in consultation with Stock Exchanges (BSE and NSEIL), it has been decided to provide fle....

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....ry / exercise of physically settled stock derivatives, the risk management framework (i.e., margins and default) of the cash segment shall be applicable. 6. Settlements of cash and equity derivative segments shall continue to remain separate. 7. The Stock Exchanges interested to introduce physical settlement are advised to: a put in place proper systems and procedures for smooth imp....