SEBI Alters Exercise Mechanism Of Commodity Futures Options
NDTV
Securities and Exchange Board of India on Monday made changes in the "exercise mechanism" of option contracts on commodity futures
Securities and Exchange Board of India (SEBI) on Monday made changes in the "exercise mechanism" of option contracts on commodity futures.
The markets regulator said that the changes were effected on the basis of feedback received from stock exchanges as well as recommendations given by the Commodity Derivatives Advisory Committee of SEBI.
The regulator in a circular said that the prescribed mechanism will be adopted by exchanges for exercise of the options contracts on expiry.
Under the mechanism, it said that All In the Money (ITM) option contracts will be exercised automatically, unless 'contrary instruction' has been given by long position holders of such contracts for not doing so.
