How does physical settlement help in preventing potential price manipulation in the stock market? Option: By limiting the number of contracts a single trader can hold, By requiring traders to hold sufficient capital to cover potential losses, By imposing stricter regulations on short selling activities, By making it more difficult for short sellers to build excessive positions

<< Back

Hi

Show Ans

i

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

By limiting the number of contracts a single trader can hold

By requiring traders to hold sufficient capital to cover potential losses

By imposing stricter regulations on short selling activities

By making it more difficult for short sellers to build excessive positions

<< Back

Hi

Show Ans

i

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

"By requiring traders to deliver or take delivery of the underlying shares"

"By encouraging more short selling"

"By reducing the margin requirements for traders"

"By increasing the complexity of the settlement process"

<< Back

Hi

Show Ans

i

What was the primary objective behind the Securities and Exchange Board of India (SEBI) mandating physical settlement for stock F&O contracts?

To enhance market liquidity and trading volumes

To streamline the process of contract expiration

To mitigate excessive speculation and market volatility

To promote greater participation from retail investors

<< Back

Hi

Show Ans

i

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

"Offsetting multiple positions of the same underlying with opposite obligations"

"Converting futures positions into options positions"

"Closing all open positions before expiry"

"Transferring positions to another broker"

<< Back

Hi

Show Ans

i

What is the primary purpose of the 'earmarking' process in stock settlements?

To enhance the security of shares during the settlement process

To streamline the transfer of funds between buyer and seller

To expedite the delivery of shares to the buyer

To facilitate the calculation of brokerage fees

<< Back

Hi

Show Ans

i

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

"To promote short selling"

"To simplify the settlement process"

"To increase market liquidity"

"To reduce excessive speculation and volatility"