Physical Settlement of Stock Derivatives

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..... inuation 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 flexibility to Stock Exc .....

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..... ivatives, 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 implementation of physical settlement. b make neces .....

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..... read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 11. The circular shall come into force from the date of the circular. 12. This circular is available on SEBI website at www.sebi.gov.in, under the category Derivatives- Circulars . Yours fai .....

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