Compulsory physical settlement is another blow by SEBI to retail traders
The move will result in increased volatility and speculation in the week before expiry
September 27, 2019 / 10:08 AM IST
In a move that will hamper liquidity in stock options, market regulator Sebi has made physical settlement compulsory from the October series. This has been done, according to Sebi, to curb excessive speculation and volatility in share prices. It will have precisely the opposite effect.
Out of the 161 stocks in the derivatives segment, 100 stocks are already trading under the physical settlement system. In two batches of 50, stocks have been moved to this segment in April and...