Comment on Policy on settlement of compulsory delivery derivative contracts
commented on
26 Jun 2019, 05:57 PM
Compulsory square-off is something that we cannot do for everyone. We have clients who take/give delivery also and who would want to trade on expiry day too.
It becomes risky for us to allow clients without the delivery margin/stocks to hold positions till Wednesday as liquidity dries up on the last 2 days for most contracts. The policy will be made more accommodative if liquidity picks up in these contracts.