Comments
Weekly and monthly derivative contracts in single stock futures and options on the BSE expiring after April 25 will be cash settled. Cash settled derivatives are those that are settled by paying or receiving the difference in cash.
On Friday, the BSE said it is discontinuing the physical delivery mode of settlement for stock futures and options effective April 26.
In physical delivery the settlement occurs when the underlying equity share changes hands in exchange for the contracted price.
“BSE had decided to change the settlement of stock futures and options keeping in mind the various representations received from several investors and trading members to bring BSE's processes in line with other exchanges providing trading in stock futures and stock options,” said Ashish Kumar Chauhan, MD & CEO.
> raghavendrarao.k@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.