SEBI issues Circular for physical settlement of stock derivatives

Feb 13, 2019 | by Avantis RegTech Legal Research Team


Securities and Exchange Board of India (SEBI) in consultation with Secondary Market Advisory Committee (SMAC), on February 08, 2019, has passed a Circular for physical settlement of stock derivatives. The stock derivatives moving to physical settlement from the new expiry cycle, have to satisfy certain criteria. Those are:

·         Stocks which witness 10% or more intra-day movement on 10 or more occasions in last 6 months.

OR

·         Stocks which witness 10% or more intra-day movement on 3 or more occasions in last 1 month.

OR

·         Stocks which witness 25% or more intra-day movement on 1 or more occasions in last 1 month.

OR

·         Maximum daily volatility of the stock (as estimated for margining purpose) is more than 10% either in equity or equity derivatives segment in last 1 month.

The above mentioned conditions will be reviewed by the exchanges on a monthly basis.

[Circular No: SEBI/HO/MRD/DOP1/CIR/P/2019/28 ]

 

URL: https://www.sebi.gov.in/legal/circulars/feb-2019/physical-settlement-of-stock-derivatives_42021.html


Bookmark

Related Updates



Alternate Text

Get updates on the go on RuleZbook Mobile App.