What was the main objective behind SEBI's decision to mandate physical delivery for stock F&O contracts? Option: "To reduce excessive speculation and volatility", "To promote short selling", "To increase market liquidity", "To simplify the settlement process"

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

"To reduce excessive speculation and volatility"

"To promote short selling"

"To increase market liquidity"

"To simplify the settlement process"

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

To mitigate excessive speculation and market volatility

To promote greater participation from retail investors

To streamline the process of contract expiration

To enhance market liquidity and trading volumes

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

"June 2021"

"April 11, 2018"

"January 2020"

"October 2019"

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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"

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

By imposing stricter regulations on short selling activities

By limiting the number of contracts a single trader can hold

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

By requiring traders to hold sufficient capital to cover potential losses

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Why does SEBI revise lot sizes periodically?

To increase the complexity of futures and options trading

To encourage more retail investor participation

To adjust for drastic changes in share value and maintain the lot value

To align with international trading standards