Business Standard

Sebi pushes for physical deliveries in commodity derivative deals

In cases where physical deliveries are not possible, cash settlements would be allowed

Sebi

Investors say Sebi has taken a very wide view without understanding the nuances.

Reuters Mumbai

The market regulator said on Monday settlement of commodity derivatives must be done through physical deliveries, though it would allow exceptions such as where the commodity is difficult to store or there are logistical challenges.

In cases where physical deliveries are not possible, cash settlements would be allowed, the Securities and Exchange Board of India (Sebi) said in its circular.

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Topics : Sebi

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First Published: Oct 16 2017 | 6:39 PM IST

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