Physical Settlement of Stock Derivatives

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....C/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 flexibility to Stock Exchanges to offer: a Cash settlement (s....

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....rgins 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 implementation of physical settlement. b make necessary amendments to the relevant bye-laws, rules and reg....