Comment on Policy on settlement of compulsory delivery derivative contracts

Namit Rathore commented on 27 Jun 2019, 01:54 PM

I knew the answer but wanted to throw out the lacunae in the policy adopted by exchange. If the intention of physical delivery is price discovery and reduce manipulation on expiry day, exchanges should net off the F&O and Cash market positions. This would also bring the prices in F&O ad cash market as close as it can be on expiry day.

Also, now that physical settlement is in place, SEBI should also completely do away with lot size. Why should learned and well informed small investors not be allowed to participate in the opportunity of making money. I don’t know what SEBI has against the small investors and why it wants to restrict their participation. We need level playing field for everyone, not just institutional players.

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