Sebi shift to physical settlement may lead to impact costs widening: Limaye

The move towards physical settlement of stocks is expected to benefit the securities lending and borrowing segment

The Securities and Exchange Board of India’s (Sebi’s) decision to shift stock derivatives from cash settlement to physical settlement can bring about some initial challenges to the markets. 

According to Vikram Limaye, managing director and chief executive officer, National Stock Exchange, there is a potential of impact costs widening as a result of this change.

Speaking at the 10th international convention of the Association of National Exchanges Members of India (Anmi), Limaye said, “The initial analysis for the 46-odd stocks that have been moved from cash to physical settlement is still a work in progress. There is some impact seen