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Index Futures NIFTY

NIFTY 26-May-22

15898.05 87.30 (0.55%) Add to Watchlist

Open 15,968.90 Avg. Price 15,985.98
High 16,091.00 Contracts Traded 240,014
Low 15,850.00 Turnover (Rs.lakhs) 1,918,429.50
Prev. Close 15,810.75 Market Lot 50
Spot Price 15,898.35 Open Interest 9,801,950
Open Int PCR 0.87 Open Int. Chg -480,650
Prev OI PCR 0.75 OI Chg % -4.67
Bid Price 15,898.35 Offer Price 15,901.25
Bid Qty 100 Offer Qty 50
Rollover % 25.17%
Option Chain NIFTY
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
407.25
(10.05%)
3,250 13,500
(1.50%)
15,650.00 36,800
(9.04%)
84,700 180.05
(-18.73%)
370.85
(5.58%)
340,550 153,250
(-8.10%)
15,700.00 854,500
(-9.74%)
2,153,850 194.85
(-19.85%)
339.15
(5.82%)
32,400 13,100
(-32.30%)
15,750.00 68,400
(3.48%)
248,450 212.05
(-18.43%)
309.60
(6.15%)
1,985,750 922,450
(-21.12%)
15,800.00 2,320,150
(2.77%)
3,754,150 232.70
(-17.85%)
279.55
(4.80%)
144,900 51,600
(-34.72%)
15,850.00 82,900
(88.41%)
236,150 253.90
(-16.48%)
251.75
(6.99%)
3,856,950 796,200
(-20.53%)
15,900.00 1,491,100
(-3.47%)
4,871,750 275.50
(-16.54%)
226.90
(5.41%)
296,550 43,550
(10.53%)
15,950.00 49,600
(45.45%)
335,550 304.80
(-14.65%)
201.70
(5.77%)
9,567,750 2,141,400
(-16.33%)
16,000.00 4,199,600
(-3.14%)
8,541,650 327.40
(-14.88%)
179.45
(5.00%)
467,350 77,050
(114.03%)
16,050.00 45,650
(57.14%)
213,250 359.40
(-11.27%)
159.25
(6.84%)
3,549,150 993,500
(-12.11%)
16,100.00 1,137,900
(-16.55%)
2,074,750 382.10
(-13.90%)

Detailed View

F&O Stats
Futures CMP Change %Chg
RBLBANK 26-May-22 111.50 9.40 +9.21%
MRF 26-May-22 72,000.00 5,965.65 +9.03%
TATAMOTORS 26-May-22 405.60 32.80 +8.80%
IGL 26-May-22 374.05 27.40 +7.90%
BHARATFORG 26-May-22 642.55 37.25 +6.15%
BANDHANBNK 26-May-22 322.65 18.05 +5.93%
GODREJCP 26-May-22 816.10 44.70 +5.79%

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FII / DII Stats
Sector Wise Open Interest & Volume

Sector

Index

Index CMP (% chg) Open Int (% chg)
SBIN 452.60 -1.58% 67,156,500 +19.35%
AUBANK 1,301.30 +4.92% 3,142,500 +8.51%
BANDHANBNK 322.65 +5.93% 41,639,400 +7.25%
RBLBANK 111.50 +9.21% 48,105,200 +7.00%
CANBK 196.50 +1.73% 44,425,800 +2.52%
BANKBARODA 96.35 +0.31% 118,310,400 +2.20%
FEDERALBNK 85.50 +0.06% 69,640,000 +2.10%
AXISBANK 640.75 -1.32% 62,400,000 +2.01%
ICICIBANK 686.25 -1.62% 111,607,375 +1.65%
KOTAKBANK 1,777.65 +0.89% 13,536,400 +0.45%
CUB 120.95 +1.34% 10,730,400 +0.35%
HDFCBANK 1,297.60 -0.41% 80,550,800 +0.27%
INDUSINDBK 878.20 +0.99% 24,860,700 -0.22%
IDFCFIRSTB 34.95 +0.43% 224,652,900 -0.36%
PNB 29.55 +3.14% 246,720,000 -2.52%

Detailed View

Global Indices
Index CMP Change % Chg
US Markets
Nasdaq 11,370.96 6.72 0.06
European Markets
FTSE 100 7,327.99 94.65 1.29
CAC 40 6,282.28 76.02 1.21
DAX 13,905.46 165.82 1.19
Asian Markets
Nikkei 225 26,427.65 678.93 2.57
Straits Times 3,193.04 27.86 0.87
Hang Seng 19,898.77 518.43 2.61
Taiwan Weighted 15,832.54 215.86 1.36
KOSPI 2,604.24 54.16 2.08
SET Composite 1,585.92 1.40 0.09
Jakarta Composite 6,597.99 -1.85 -0.03
Shanghai Composite 3,084.28 29.29 0.95
SGX Nifty 15,925.00 108.50 0.68

Detailed View

Open Interest Breakup
Symbol Total OI Change % Chg
ASHOKLEY 26-May-22 63,738,000 670,500 1.06
ABCAPITAL 26-May-22 40,343,600 2,081,200 3.92
ADANIENT 26-May-22 28,063,500 534,000 4.10
AARTIIND 26-May-22 4,992,900 -34,000 5.44
APOLLOHOSP 26-May-22 4,617,375 174,250 -0.68
ACC 26-May-22 3,629,500 143,000 6.19
ABB 26-May-22 802,000 46,750 1.94
ATUL 26-May-22 195,525 -825 -0.42

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Arbitrage
Company Future Cash Basis
ABBOTINDIA 16,591.75 16,541.50 50.25
BOSCHLTD 13,252.70 13,235.60 17.10
LTI 4,137.35 4,122.25 15.10
APOLLOHOSP 3,601.10 3,588.65 12.45
BAJFINANCE 5,583.75 5,572.15 11.60
DRREDDY 3,945.70 3,936.85 8.85
ZYDUSLIFE 349.75 341.60 8.15
HEROMOTOCO 2,473.90 2,466.15 7.75
ALKEM 2,933.50 2,925.85 7.65
MPHASIS 2,465.05 2,459.00 6.05
MCX 1,167.55 1,162.20 5.35
ATUL 8,404.95 8,400.00 4.95
BALKRISIND 1,930.30 1,925.85 4.45
BAJAJFINSV 12,716.30 12,712.15 4.15
ADANIENT 2,099.00 2,095.15 3.85
COLPAL 1,612.70 1,609.10 3.60
ASTRAL 1,752.35 1,748.95 3.40
INFY 1,518.30 1,514.90 3.40
AUBANK 1,301.30 1,297.95 3.35
EICHERMOT 2,461.85 2,459.00 2.85
ACC 2,142.00 2,139.35 2.65
VOLTAS 940.25 937.60 2.65
CUMMINSIND 1,004.20 1,001.60 2.60
UBL 1,452.25 1,449.80 2.45
ADANIPORTS 715.75 713.35 2.40
M&M 897.20 894.90 2.30
INDIGO 1,654.55 1,652.30 2.25
TRENT 1,045.60 1,043.40 2.20
AMARAJABAT 516.05 513.90 2.15
WHIRLPOOL 1,580.95 1,578.95 2.00
BATAINDIA 1,705.95 1,704.15 1.80
HDFCBANK 1,297.60 1,295.95 1.65
CIPLA 931.30 929.85 1.45
LT 1,548.00 1,546.60 1.40
ICICIBANK 686.25 684.85 1.40
HINDALCO 391.15 390.00 1.15
IGL 375.65 374.65 1.00
MARICO 509.30 508.30 1.00
TORNTPOWER 441.65 440.65 1.00
HDFC 2,153.15 2,152.20 0.95
BERGEPAINT 665.45 664.50 0.95
DIVISLAB 4,294.75 4,293.80 0.95
BIOCON 331.55 330.65 0.90
ICICIPRULI 498.00 497.10 0.90
BALRAMCHIN 394.55 393.70 0.85
DABUR 508.00 507.15 0.85
HDFCAMC 1,803.25 1,802.40 0.85
TITAN 2,107.00 2,106.15 0.85
HAL 1,536.00 1,535.30 0.70
PERSISTENT 3,605.60 3,604.90 0.70
RAIN 149.90 149.30 0.60
CANFINHOME 487.65 487.05 0.60
BHARATFORG 642.55 642.00 0.55
ASHOKLEY 124.00 123.50 0.50
HCLTECH 1,066.00 1,065.55 0.45
DELTACORP 227.60 227.25 0.35
BANDHANBNK 322.65 322.30 0.35
ASIANPAINT 3,078.65 3,078.35 0.30
COALINDIA 170.85 170.55 0.30
HINDPETRO 261.30 261.05 0.25
ONGC 154.95 154.75 0.20
CROMPTON 355.15 355.00 0.15
AMBUJACEM 361.80 361.70 0.10
FSL 110.10 110.00 0.10
GAIL 150.25 150.15 0.10
GLENMARK 398.15 398.05 0.10
POWERGRID 237.80 237.75 0.05
AUROPHARMA 569.50 569.45 0.05
COROMANDEL 893.30 893.25 0.05
OBEROIRLTY 815.50 815.45 0.05
GRANULES 239.70 239.70 0.00
HAVELLS 1,243.00 1,243.00 0.00
IDFCFIRSTB 34.95 34.95 0.00
JUBLFOOD 480.65 480.65 0.00
NBCC 33.10 33.10 0.00
PNB 29.55 29.55 0.00
RECLTD 114.85 114.85 0.00
IDFC 50.60 50.65 -0.05
NATIONALUM 89.20 89.25 -0.05
IDEA 8.45 8.50 -0.05
MOTHERSUMI 118.10 118.15 -0.05
INDUSTOWER 185.35 185.45 -0.10
INDIACEM 171.30 171.40 -0.10
BHEL 46.85 46.95 -0.10
GMRINFRA 33.55 33.65 -0.10
GUJGASLTD 572.00 572.10 -0.10
IEX 188.95 189.05 -0.10
BRITANNIA 3,300.80 3,300.95 -0.15
EXIDEIND 144.05 144.20 -0.15
CUB 120.95 121.10 -0.15
L&TFH 76.40 76.55 -0.15
HINDCOPPER 93.50 93.65 -0.15
MANAPPURAM 100.30 100.45 -0.15
HINDUNILVR 2,202.55 2,202.75 -0.20
NTPC 145.05 145.25 -0.20
IOC 122.80 123.00 -0.20
RBLBANK 111.50 111.70 -0.20
LUPIN 701.00 701.20 -0.20
BANKBARODA 96.35 96.60 -0.25
BPCL 339.35 339.60 -0.25
FEDERALBNK 85.50 85.75 -0.25
NMDC 137.10 137.35 -0.25
PEL 1,855.65 1,855.90 -0.25
SUNTV 416.20 416.45 -0.25
DLF 323.35 323.65 -0.30
ABCAPITAL 101.50 101.80 -0.30
PFC 105.40 105.70 -0.30
LICHSGFIN 338.60 338.95 -0.35
APOLLOTYRE 202.45 202.80 -0.35
GNFC 642.35 642.75 -0.40
IBULHSGFIN 120.95 121.35 -0.40
VEDL 296.70 297.10 -0.40
CANBK 196.50 196.95 -0.45
SAIL 80.35 80.80 -0.45
ABFRL 265.65 266.10 -0.45
GODREJCP 816.10 816.65 -0.55
TATAMOTORS 405.60 406.15 -0.55
M&MFIN 167.50 168.10 -0.60
ZYDUSLIFE 341.00 341.60 -0.60
AARTIIND 759.85 760.50 -0.65
HDFCLIFE 557.90 558.55 -0.65
BSOFT 365.50 366.15 -0.65
PVR 1,755.35 1,756.00 -0.65
KOTAKBANK 1,777.65 1,778.35 -0.70
JINDALSTEL 460.75 461.45 -0.70
BEL 221.35 222.05 -0.70
CHOLAFIN 636.80 637.55 -0.75
WIPRO 468.30 469.05 -0.75
LAURUSLABS 537.50 538.30 -0.80
CHAMBLFERT 408.45 409.25 -0.80
INDHOTEL 221.85 222.70 -0.85
PETRONET 206.50 207.35 -0.85
ZEEL 242.00 242.90 -0.90
NAM-INDIA 279.60 280.55 -0.95
STAR 279.00 279.95 -0.95
TATAPOWER 224.80 225.75 -0.95
AXISBANK 640.75 641.70 -0.95
INDUSINDBK 878.20 879.30 -1.10
GRASIM 1,483.40 1,484.60 -1.20
JSWSTEEL 604.20 605.45 -1.25
SYNGENE 539.45 540.75 -1.30
GSPL 253.00 254.35 -1.35
ICICIGI 1,294.55 1,296.00 -1.45
UPL 788.00 789.45 -1.45
SBICARD 732.00 733.50 -1.50
CONCOR 614.25 615.85 -1.60
TVSMOTOR 636.50 638.10 -1.60
MGL 751.85 753.50 -1.65
TATASTEEL 1,107.65 1,109.35 -1.70
MCDOWELL-N 830.70 832.40 -1.70
BHARTIARTL 695.25 697.00 -1.75
OFSS 3,259.20 3,261.05 -1.85
SUNPHARMA 880.00 881.90 -1.90
INTELLECT 581.85 583.90 -2.05
SIEMENS 2,310.25 2,312.60 -2.35
TECHM 1,210.75 1,213.15 -2.40
ESCORTS 1,555.00 1,557.55 -2.55
POLYCAB 2,543.40 2,546.00 -2.60
APLLTD 737.85 740.45 -2.60
SRTRANSFIN 1,076.35 1,078.95 -2.60
MARUTI 7,203.35 7,206.00 -2.65
TATACOMM 965.15 967.80 -2.65
TATACHEM 936.10 939.00 -2.90
TATACONSUM 745.00 747.90 -2.90
MFSL 722.05 724.95 -2.90
DALBHARAT 1,416.45 1,419.80 -3.35
PIDILITIND 2,133.80 2,137.20 -3.40
SBILIFE 1,054.40 1,057.85 -3.45
GODREJPROP 1,360.00 1,363.45 -3.45
ITC 255.80 259.45 -3.65
NAUKRI 3,520.30 3,524.55 -4.25
SRF 2,268.90 2,273.60 -4.70
MUTHOOTFIN 1,129.40 1,134.35 -4.95
NAVINFLUOR 3,953.70 3,959.00 -5.30
RAMCOCEM 689.25 694.95 -5.70
RELIANCE 2,450.85 2,456.60 -5.75
DEEPAKNTR 1,988.60 1,994.55 -5.95
MINDTREE 2,950.75 2,957.70 -6.95
SBIN 452.60 460.15 -7.55
TORNTPHARM 2,604.90 2,612.95 -8.05
PIIND 2,396.85 2,405.60 -8.75
LTTS 3,521.00 3,529.95 -8.95
JKCEMENT 2,283.05 2,292.25 -9.20
TCS 3,406.00 3,416.60 -10.60
IRCTC 641.85 652.95 -11.10
ABB 2,255.55 2,267.50 -11.95
IPCALAB 963.30 977.00 -13.70
ULTRACEMCO 6,208.05 6,222.45 -14.40
DIXON 3,372.65 3,387.95 -15.30
NESTLEIND 16,410.20 16,425.90 -15.70
COFORGE 3,747.00 3,765.00 -18.00
BAJAJ-AUTO 3,660.90 3,680.05 -19.15
METROPOLIS 2,006.20 2,047.80 -41.60
SHREECEM 22,586.90 22,637.70 -50.80
LALPATHLAB 2,259.90 2,311.80 -51.90
HONAUT 34,549.95 34,616.00 -66.05
INDIAMART 4,148.95 4,246.00 -97.05
PAGEIND 42,401.95 42,550.05 -148.10
MRF 72,000.00 72,459.20 -459.20

Detailed View

Corporate Action
Stock Ex-Date Purpose
Alkem Lab 13-May-22 Board Meeting
Bandhan Bank 13-May-22 Board Meeting
Balkrishna Ind 13-May-22 Board Meeting
Bank of Baroda 13-May-22 Board Meeting
Escorts 13-May-22 Board Meeting
Eicher Motors 13-May-22 Board Meeting
Hindustan Aeron 13-May-22 Board Meeting
REC 13-May-22 Board Meeting
SBI 13-May-22 Board Meeting
Tech Mahindra 13-May-22 Board Meeting
Advance Decline Table
  Future Calls Puts
Advanced 120 (85%) 1,601 (26%) 276 (4%)
Declined 20 (14%) 713 (11%) 1,820 (30%)
Unchanged 1 (1%) 3,888 (63%) 4,073 (66%)
Total 141 6,202 6,169
FAQ

What are Derivatives?

The term "Derivative" indicates that it has no independent value, i.e. its value is entirely "derived" from the value of the underlying asset. The underlying asset can be Securities, Commodities, Bullion, Currency, Livestock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities. With Securities Laws (Second Amendment) Act,1999, Derivatives has been included in the definition of Securities. The term Derivative has been defined in Securities Contracts (Regulations) Act, as:- a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security; a contract which derives its value from the prices, or index of prices, of underlying securities.

What is a Futures Contract?

Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. Future contracts are the organized/standardized contracts in terms of quantity, quality (in case of commodities), delivery time and place for settlement on any date in future. The contract expires on a pre-specified date which is called the expiry date of the contract. On expiry, futures can be settled by delivery of the underlying asset or cash. Cash settlement enables the settlement of obligations arising out of the future/option contract in cash.

What is an Option Contract?

Option Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period. The buyer/holder of the option purchases the right from the seller/writer for a consideration which is called the premium. The seller/writer of an option is obligated to settle the option as per the terms of the contract when the buyer/holder exercises his right. The underlying asset could include securities, an index of prices of securities etc. Under Securities Contracts (Regulations) Act,1956 options on securities has been defined as "option in securities" means a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell, securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities. An Option to buy is called Call option and option to sell is called Put option. Further, if an option that is exercisable on or before the expiry date is called American option and one that is exercisable only on expiry date, is called European option. The price at which the option is to be exercised is called Strike price or Exercise price. Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date. This request for exercise is submitted to the Exchange, which randomly assigns the exercise request to the sellers of the options, who are obligated to settle the terms of the contract within a specified time frame. As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash. However, unlike futures cash settlement in option contract entails paying/receiving the difference between the strike price/exercise price and the price of the underlying asset either at the time of expiry of the contract or at the time of exercise / assignment of the option contract.

What are Index Futures and Index Option Contracts?

Futures contract based on an index i.e. the underlying asset is the index, are known as Index Futures Contracts. For example, futures contract on NIFTY Index and BSE-30 Index. These contracts derive their value from the value of the underlying index. Similarly, the options contracts, which are based on some index, are known as Index options contract. However, unlike Index Futures, the buyer of Index Option Contracts has only the right but not the obligation to buy / sell the underlying index on expiry. Index Option Contracts are generally European Style options i.e. they can be exercised / assigned only on the expiry date. An index, in turn derives its value from the prices of securities that constitute the index and is created to represent the sentiments of the market as a whole or of a particular sector of the economy. Indices that represent the whole market are broad based indices and those that represent a particular sector are sectoral indices. In the beginning futures and options were permitted only on S&P Nifty and BSE Sensex. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria. Derivative contracts may be permitted on an index if 80% of the index constituents are individually eligible for derivatives trading. However, no single ineligible stock in the index shall have a weightage of more than 5% in the index. The index is required to fulfill the eligibility criteria even after derivatives trading on the index has begun. If the index does not fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued. By its very nature, index cannot be delivered on maturity of the Index futures or Index option contracts therefore, these contracts are essentially cash settled on Expiry.

What is the structure of deravatives markets in India?

Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a separate segment of an existing Stock Exchange. Derivative Exchange/Segment function as a Self-Regulatory Organisation (SRO) and SEBI acts as the oversight regulator. The clearing & settlement of all trades on the Derivative Exchange/Segment would have to be through a Clearing Corporation/House, which is independent in governance and membership from the Derivative Exchange/Segment.

What is the regulatory framework of derivatives markets in India?

With the amendment in the definition of ''securities'' under SC(R)A (to include derivative contracts in the definition of securities), derivatives trading takes place under the provisions of the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992. Dr. L.C Gupta Committee constituted by SEBI had laid down the regulatory framework for derivative trading in India. SEBI has also framed suggestive bye-law for Derivative Exchanges/Segments and their Clearing Corporation/House which lays down the provisions for trading and settlement of derivative contracts. The Rules, Bye-laws & Regulations of the Derivative Segment of the Exchanges and their Clearing Corporation/House have to be framed in line with the suggestive Bye-laws. SEBI has also laid the eligibility conditions for Derivative Exchange/Segment and its Clearing Corporation/House. The eligibility conditions have been framed to ensure that Derivative Exchange/Segment & Clearing Corporation/House provide a transparent trading environment, safety & integrity and provide facilities for redressal of investor grievances. Some of the important eligibility conditions are - 1.Derivative trading to take place through an online screen based Trading System. 2.The Derivatives Exchange/Segment shall have online surveillance capability to monitor positions, prices, and volumes on a real time basis to deter market manipulation. 3.The Derivatives Exchange/ Segment should have arrangements for dissemination of information about trades, quantities and quotes on a real time basis through atleast two information vending networks, which are easily accessible to investors across the country. 4.The Derivatives Exchange/Segment should have arbitration and investor grievances redressal mechanism operative from all the four areas / regions of the country. 5.The Derivatives Exchange/Segment should have satisfactory system of monitoring investor complaints and preventing irregularities in trading. 6.The Derivative Segment of the Exchange would have a separate Investor Protection Fund. 7.The Clearing Corporation/House shall perform full novation, i.e. the Clearing Corporation/House shall interpose itself between both legs of every trade, becoming the legal counterparty to both or alternatively should provide an unconditional guarantee for settlement of all trades. 8.The Clearing Corporation/House shall have the capacity to monitor the overall position of Members across both derivatives market and the underlying securities market for those Members who are participating in both. 9.The level of initial margin on Index Futures Contracts shall be related to the risk of loss on the position. The concept of value-at-risk shall be used in calculating required level of initial margins. The initial margins should be large enough to cover the one-day loss that can be encountered on the position on 99% of the days. 10.The Clearing Corporation/House shall establish facilities for electronic funds transfer (EFT) for swift movement of margin payments. 11.In the event of a Member defaulting in meeting its liabilities, the Clearing Corporation/House shall transfer client positions and assets to another solvent Member or close-out all open positions. 12.The Clearing Corporation/House should have capabilities to segregate initial margins deposited by Clearing Members for trades on their own account and on account of his client. The Clearing Corporation/House shall hold the clients margin money in trust for the client purposes only and should not allow its diversion for any other purpose. 13.The Clearing Corporation/House shall have a separate Trade Guarantee Fund for the trades executed on Derivative Exchange / Segment. Presently, SEBI has permitted Derivative Trading on the Derivative Segment of BSE and the F&O Segment of NSE.

What are the various membership categories in the derivatives market?

The various types of membership in the derivatives market are as follows: 1.Trading Member (TM) A TM is a member of the derivatives exchange and can trade on his own behalf and on behalf of his clients. 2.Clearing Member (CM) These members are permitted to settle their own trades as well as the trades of the other non-clearing members known as Trading Members who have agreed to settle the trades through them. 3.Self-clearing Member (SCM) A SCM are those clearing members who can clear and settle their own trades only.

What are the requirements to be a member of the Derivatives Exchange/Clearing Corporation?

1.Balance Sheet Networth Requirements: SEBI has prescribed a networth requirement of Rs. 3 crores for clearing members. The clearing members are required to furnish an auditor's certificate for the networth every 6 months to the exchange. The networth requirement is Rs. 1 crore for a self-clearing member. SEBI has not specified any networth requirement for a trading member. 2.Liquid Networth Requirements: Every clearing member (both clearing members and self-clearing members) has to maintain at least Rs. 50 lakhs as Liquid Networth with the Exchange/Clearing Corporation. 3.Certification requirements: The Members are required to pass the certification programme approved by SEBI. Further, every trading member is required to appoint at least two approved users who have passed the certification programme. Only the approved users are permitted to operate the derivatives trading terminal.

What are requirements for a Member with regard to the conduct of his business?

The derivatives member is required to adhere to the code of conduct specified under the SEBI Broker Sub-Broker regulations. The following conditions stipulations have been laid by SEBI on the regulation of sales practices: 1.Sales Personnel: The derivatives exchange recognizes the persons recommended by the Trading Member and only such persons are authorized to act as sales personnel of the TM. These persons who represent the TM are known as Authorised Persons. 2.Know-your-client:The member is required to get the Know-your-client form filled by every client. 3.Risk disclosure document: The derivatives member must educate his client on the risks of derivatives by providing a copy of the Risk disclosure document to the client. 4.Member-client agreement: The Member is also required to enter into the Member-client agreement with all his clients.

What derivatives contracts are permitted by SEBI?

Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June 2000. Index Options and Stock Options were introduced in June 2001 and July 2001 followed by Stock Futures in November 2001. Sectoral Indices were permitted for derivatives trading in December 2002. Interest Rate Futures on a notional bond and T-bill priced off ZCYC have been introduced in June 2003 and Exchange Traded Interest Rate Futures on a notional bond priced off a basket of Government Securities were permitted for trading in January 2004.

What is the eligibility criterion for stocks on which derivatives trading may be permitted?

A stock on which Stock Option and single Stock Future contracts are proposed to be introduced is required to fulfill the following broad eligibility criteria:- 1.The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalisation and average daily traded value in the previous six month on a rolling basis. 2.The stocks median quarter-sigma order size over the last six months shall be not less than Rs.1 Lakh. A stocks quarter-sigma order size is the mean order size (in value terms) required to cause a change in the stock price equal to one-quarter of a standard deviation. 3.The market wide position limit in the stock shall not be less than Rs.50 crores. A stock can be included for derivatives trading as soon as it becomes eligible. However, if the stock does not fulfill the eligibility criteria for 3 consecutive months after being admitted to derivatives trading, then derivative contracts on such a stock would be discontinued.

What is Mimimum Contract Size?

The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract (Regulation) Act, 1956 had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs. 2 Lakhs. Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. 2 Lakh at the time of introducing the contract in the market. In February 2004, the Exchanges were advised to re-align the contracts sizes of existing derivative contracts to Rs. 2 Lakhs. Subsequently, the Exchanges were authorized to align the contracts sizes as and when required in line with the methodology prescribed by SEBI.

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13-05-2022 14:25:12