Investors will soon be able to take physical delivery in the derivative segments too, market regulator Securities and Exchange Board of India said on Saturday. SEBI, however, did not specify any timeline for the same.

Speaking to media SEBI Chaiman, C. B. Bhave, said that there was a demand for allowing physical delivery in the derivatives segment and the regulator sees some substance in it. So SEBI has decided to allow the same.

However, now the regulator will take up the matter to the exchanges to devise a sound mechanism. "There will be a need for proper risk-containment systems," Bhave added.

SEBI is also thinking over long-term contracts in the derivatives market as its Chairman said, "Long-term contracts up to five years will also be possible."

Bhave also informed that the market watchdog has decided that starting from May 1, Qualified Institutional Buyers (QIBs) would have to pay the full money as it is done by other investors in case of primary market offers.

Replying to a question about SEBI's stand during war of words between companies during open offers, Bhave clarified that the regulator can not control things outside the market.