BSE shifts to cash settlement in F&O from April 26

Our Bureau Mumbai | Updated on March 22, 2013 Published on March 22, 2013

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.


Published on March 22, 2013
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