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India to liberalise some aspects of equity derivatives
09 March 2010
The Securities and Exchange Board of India has approved in principle the introduction of physically delivered equity derivatives.
Read more:
[India]
[equity derivatives]
[Securities and Exchange Board of India]
[SEBI]
[physical delivery]
[physical settlement]
[volatility]
[volatility indices]
The regulator announced the policy on Friday March 5 as part of a series of reform proposals. SEBI has also agreed to permit derivatives with five year maturities and futures and options on well-established and mature volatility indices.
“The Board has decided that we will discuss with the stock exchanges and institute an appropriate mechanism for physical delivery in the derivatives market,” said SEBI chairman CB Bhave.
Equity derivatives were introduced in 2000 but only with financial settlement.
The head of futures and options at a futures commission merchant in Mumbai said that while the proposals were “a good thing” for the development of India’s derivatives markets, they raised several...
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