Equity market regulator, Securities and Exchange Board of India (SEBI) announced that it has decided to allow physical delivery in the derivatives segment following its board meeting, held here today.

However, no timeline has been fixed by the SEBI for this.

SEBI Chairman C B Bhave told media persons ‘ The SEBI board has decided to allow physical delivery in the derivatives segment.

There has been a demand for this for some time now and the Board felt that there was some substance in this.’ ‘SEBI will discuss with the various stock-exchanges, including Delhi and Mumbai and institute an appropriate mechanism for physical delivery in derivatives market,’ he said.

Commenting further that there will be a need for proper risk-containment systems, Mr Bhave said, ‘ This issue would now be discussed with the stock-exchanges and an appropriate mechanism for physical delivery in derivatives would be evolved.’

UNI