What was the primary method of settlement for equity futures and options in India before the introduction of physical settlement?

"Cash Settlement" "Physical Delivery" "Deferred Settlement" "Hybrid Settlement"

What was the main objective behind SEBI's decision to mandate physical delivery for stock F&O contracts?

"To increase market liquidity" "To promote short selling" "To reduce excessive speculation and volatility" "To simplify the settlement process"

From what date onwards did physical settlement become mandatory for all stock F&O contracts in India?

"April 11, 2018" "October 2019" "January 2020" "June 2021"

Under physical settlement, what is the obligation of a trader holding a long futures position at expiry?

"To pay the total contract value and take delivery of shares" "To receive the difference between the entry price and settlement price" "To sell the underlying shares in the market" "To roll over the position to the next expiry"

How does physical settlement help in preventing price manipulation in the market?

"By encouraging more short selling" "By reducing the margin requirements for traders" "By requiring traders to deliver or take delivery of the underlying shares" "By increasing the complexity of the settlement process"

Which of the following F&O positions would result in a 'Take Delivery' obligation?

"Short Futures" "Short ITM Call" "Long ITM Put" "Long Futures"

What happens to an option contract that expires Out of The Money (OTM) under physical settlement?

"It is physically settled with delivery of shares" "It expires worthlessly with no delivery obligation" "It is automatically rolled over to the next expiry" "It is converted into a futures contract"

In the context of physical settlement, what does 'netting off' positions refer to?

"Closing all open positions before expiry" "Offsetting multiple positions of the same underlying with opposite obligations" "Transferring positions to another broker" "Converting futures positions into options positions"

How does the margin requirement change for traders under physical settlement compared to cash settlement?

"Margin requirements are eliminated under physical settlement" "Traders only need to maintain the premium for long options" "Traders need to bring in 100% of the contract value for delivery obligations" "Margin requirements are significantly reduced under physical settlement"