Sebi plans to curb speculation in F&O trading via physical settlement, says report

Sebi is set to complete its first month of trading in stock options segment with settlement through physical shares on Thursday, reported The Times of India.

Financial regulator Sebi said in April that the market would move to physical settlement in the F&O segment in a phased manner to reduce volatility and make market trading safer, the report said.

The new pattern would mean that a section of trades would be conducted through the actual share transfers rather than cash, the report said. This cash settlement system reportedly encouraged speculative trade in the country harming the market.