Preparation of simultaneous settlement of F&O and cash market


AHMEDABAD: Sebi is trying on several fronts to bring consistency to the cash and futures market in India. According to the report, the facility of net settlement of futures and options and cash trades may start by March.

A committee of SEBI has approved this proposal. According to estimates, this new change will be implemented by February-March. The major benefit of this newly proposed system will be that customers will be able to have net settlement of liabilities and obligations between the futures and cash segments and will also increase liquidity.

In general terms, futures and options arrears can be settled from the cash segment and there will be no tension of separate settlement and fund arrangements.

Currently there is a separate settlement formula for futures and cash transactions. Both consumers and brokers will benefit if this new system is implemented.

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