Less volatile F&O expiry price point to improve discovery: ANMI chief

ANMI President Kamlesh Shroff said a less volatile price point for F&O contracts on expiry could improve price discovery. He also spoke on bond tokenisation, instantaneous settlement via Demat 2.0, and the growing role of AI in trading.

Changes Proposed for Derivatives Market

A less volatile price point for futures and options contracts on expiry days could help improve price discovery, Kamlesh Shroff, National President of the Association of National Exchanges Members of India (ANMI), said on Friday, while discussing possible changes in the derivatives market.

Shroff said that the consultation paper on the derivatives market structure is expected shortly and that the framework could evolve over time as different participants in the ecosystem adopt the changes. “Can we look at a solution where we can close the referral pricing for options specifically? Can we close the futures and options on an expiry day? Can close with a particular price point which is less volatile? That is the basic rational and well-discovered price,” Shroff said in an interview with ANI on the sidelines of Global FinTech Fest 2026 in Mumbai.

He said the proposed changes should allow sufficient time for all ecosystem participants to be brought into the system, while the existing cash market framework would continue to remain in place.

Developments in Bond Tokenisation

Shroff also highlighted developments in bond tokenisation, saying the technology would allow investors to buy smaller quantities of bonds while enabling the payment and the underlying asset to be exchanged immediately. According to him, tokenised structures could also make transactions more secure by reducing the risk of duplication and fraud.

Demat 2.0 and Instantaneous Settlement

On Demat 2.0, Shroff said the system would move securities settlement from the existing T+1 framework towards instantaneous delivery versus payment, with the movement of securities and money taking place almost simultaneously. He compared the shift to the transition from NEFT to IMPS, saying the new system would enable transactions to take place “almost on spot”.

Impact of FCNR-B Deposits

On FCNR-B deposits, around USD 127 billion had arrived by August 31, compared with expectations of around USD 100 billion. Shroff said such large deposits can provide a boost to the rupee while the funds remain in the system, although they could eventually flow out as the deposits are liabilities that have to be paid up.

Artificial Intelligence in Trading

Shroff further said artificial intelligence is emerging as a key theme in trading, while AI-based software is also simplifying online customer onboarding and digital KYC processes. “The simplification of almost online onboarding is something that is the future way forward,” he said.

(ANI)

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