Do not require additional infrastructure to implement physical delivery of stock derivatives, says Chauhan of BSE

Ashish Kumar Chauhan, MD & CEO of BSE, spoke to CNBC-TV18 about the recently issued Sebi's framework for making physical settlement of stock derivatives mandatory in a phased manner.

“Physical deliveries are a must in ensuring that there is convergence of futures and options prices with underlying/spot segment prices. For a year now, Sebi has already implemented physical deliveries in 40-50 stocks and all commodities are settled via physical delivery," said Chauhan.

"Over the last one year, Sebi has taken a decision to move everything to physical deliveries where possible," he added.

Chauhan also assured that the infrastructure was already in place and there was no need for additional infrastructure. "Everyone is used to doing deliveries in equities, so this is just an additional framework," he added.

Talking about the separate platform that was launched by the BSE for start-ups, he said, "They have made it easier for start-ups to come and raise funds, adding that if the companies are registered with Startup India then there will be no minimum networth criteria requirement. There is lot of excitement in that segment."