BANKING AFFAIRS

Detailed explanation-1: -Most options and futures contracts are cash-settled. However, an exception is listed equity options contracts, which are often settled by delivery of the actual underlying shares of stock.

Detailed explanation-2: -In a physical settlement, the seller has to physically deliver the stocks to the buyer at the end of the expiration date. In a physical settlement, the following transactions take place: Taking Delivery: As a buyer, you take the delivery of the stocks after the expiration date.

Detailed explanation-3: -⁴Stocks delivered through physical delivery can be sold only after T+1 days from the expiry day when the stock is delivered to the demat. In case the counterparty defaults to give delivery, the credits of shares from physical delivery post-auction may take up to T+4 days.

Detailed explanation-4: -4.1. 5 SMAC also took note of the recommendations of the L.C Gupta committee, constituted by SEBI, which laid down the principles for development and regulation of derivative markets in India.