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    Question

    Which category of transactions is not eligible for

    same-day netting under SEBI’s FPI proposal?
    A Cross-security outright trades Correct Answer Incorrect Answer
    B Equity sell transactions Correct Answer Incorrect Answer
    C Same-security buy and sell transactions Correct Answer Incorrect Answer
    D Cash market bond trades Correct Answer Incorrect Answer
    E Derivative contracts Correct Answer Incorrect Answer

    Solution

    SEBI's proposal allows same-day netting for FPIs only across different securities in outright trades. Same-security trades (buy and sell) must still settle on a gross basis to prevent market manipulation and risk concentration.

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