Comment on Policy on settlement of compulsory delivery derivative contracts — Update Oct 2019
commented on
29 Feb 2020, 03:57 PM
Kaushal what it means is that for the purpose of P&L computation, the buy price(in case of take delivery) and sell price(in case of give delivery) will the settlement price of the stock on the expiry day.
For example, you have a long futures position in Reliance and you carry the position to expiry and it is physically settled. The buy average of the stocks you receive will be the settlement price of the on the expiry for Reliance.