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Index Futures NIFTY

NIFTY 26-Apr-18

10580.00 41.15 (0.39%) Add to Watchlist

Open 10,581.15 Avg. Price 10,569.43
High 10,585.55 Contracts Traded 75,004
Low 10,550.00 Turnover (Rs.lakhs) 594,562.15
Prev. Close 10,538.85 Market Lot 75
Spot Price 10,565.30 Open Interest 26,850,300
Open Int PCR 1.63 Open Int. Chg -298,425
Prev OI PCR 1.59 OI Chg % -1.10
Bid Price 10,579.15 Offer Price 10,580.00
Bid Qty 7,650 Offer Qty 1,725
Rollover % 8.65%
Option Chain NIFTY
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
232.35
(11.01%)
17,400 56,700
(-2.45%)
10,350.00 535,800
(-7.97%)
857,850 15.95
(-38.77%)
194.00
(18.04%)
1,120,875 1,786,050
(-6.20%)
10,400.00 5,190,450
(0.31%)
11,089,575 21.30
(-37.54%)
148.70
(17.50%)
188,100 95,850
(-15.81%)
10,450.00 861,600
(31.58%)
2,011,875 27.50
(-36.56%)
111.20
(21.26%)
8,955,825 3,677,775
(-7.17%)
10,500.00 5,521,425
(12.97%)
17,524,275 38.75
(-34.87%)
74.15
(20.18%)
1,981,125 509,625
(-6.98%)
10,550.00 773,400
(23.60%)
2,714,400 52.00
(-33.33%)
47.05
(18.22%)
16,906,275 4,044,825
(8.13%)
10,600.00 1,593,150
(28.60%)
8,674,875 72.80
(-30.30%)
27.20
(13.57%)
2,292,300 1,030,275
(-5.87%)
10,650.00 91,650
(104.35%)
246,600 98.30
(-25.10%)
13.90
(9.88%)
9,110,475 5,111,775
(-1.33%)
10,700.00 426,225
(5.59%)
1,966,050 136.15
(-21.62%)
7.10
(4.41%)
1,041,375 520,575
(18.39%)
10,750.00 1,050
-
150 182.00
(-17.52%)
3.60
(-14.29%)
3,206,475 2,226,300
(0.81%)
10,800.00 160,950
(-8.29%)
125,250 221.15
(-15.17%)

Detailed View

F&O Stats
Futures CMP Change %Chg
NATIONALUM 26-Apr-18 87.40 7.05 +8.77%
HINDALCO 26-Apr-18 263.70 20.15 +8.27%
VEDL 26-Apr-18 311.35 19.25 +6.59%
JUSTDIAL 26-Apr-18 474.50 24.10 +5.35%
JSWSTEEL 26-Apr-18 325.10 14.35 +4.62%
TATAELXSI 26-Apr-18 1,113.30 46.45 +4.35%
APOLLOHOSP 26-Apr-18 1,123.55 44.90 +4.16%

more

FII / DII Stats
Sector Wise Open Interest & Volume

Sector

Index

Index CMP (% chg) Open Int (% chg)
CEATLTD 1,608.95 +0.70% 1,420,650 +0.35%
TATAMOTORS 336.15 +0.04% 70,264,500 +0.21%
HEROMOTOCO 3,728.20 -0.61% 1,546,600 +0.21%
TATAMTRDVR 191.55 +0.37% 25,175,000 -0.25%
EICHERMOT 30,980.00 +0.02% 215,400 -0.35%
M&M 805.50 +0.57% 15,003,000 -0.45%
BOSCHLTD 19,633.00 +0.85% 194,650 -0.76%
APOLLOTYRE 293.40 +1.03% 11,592,000 -0.97%
TVSMOTOR 678.00 +0.30% 4,418,000 -1.30%
MARUTI 9,107.95 -0.32% 2,436,675 -1.41%
MOTHERSUMI 347.10 +1.37% 13,206,400 -1.59%
ESCORTS 970.50 +0.44% 3,683,900 -1.62%
EXIDEIND 244.25 +0.49% 9,488,000 -1.66%
MRF 79,404.10 +0.25% 39,375 -1.83%
BALKRISIND 1,318.95 +0.69% 948,800 -2.79%
ASHOKLEY 151.20 +1.20% 61,369,000 -3.61%
BAJAJ-AUTO 2,857.85 -0.16% 2,447,250 -5.18%
AMARAJABAT 848.00 -0.24% 1,333,500 -8.33%

Detailed View

Global Indices
Index CMP Change % Chg
US Markets
Nasdaq 7,295.24 14.14 0.19
European Markets
FTSE 100 7,338.29 20.95 0.29
CAC 40 5,391.34 11.17 0.21
DAX 12,581.10 -9.73 -0.08
Asian Markets
Nikkei 225 22,191.18 32.98 0.15
Straits Times 3,598.73 40.91 1.14
Hang Seng 30,708.44 424.19 1.38
Taiwan Weighted 10,971.22 123.33 1.12
KOSPI 2,486.10 6.12 0.25
SET Composite 1,794.94 23.38 1.30
Jakarta Composite 6,355.90 35.89 0.56
Shanghai Composite 3,117.55 26.15 0.84
SGX Nifty 10,588.00 33.50 0.32

Detailed View

Open Interest Breakup
Symbol Total OI Change % Chg
ASHOKLEY 26-Apr-18 101,990,000 -3,227,000 -1.20
ADANIENT 26-Apr-18 59,532,000 -724,000 -12.61
ANDHRABANK 26-Apr-18 30,610,000 70,000 -2.67
ALBK 26-Apr-18 19,600,000 -80,000 -4.23
ARVIND 26-Apr-18 8,914,000 524,000 0.23
HEXAWARE 26-Apr-18 8,526,000 -234,000 -0.41
ACC 26-Apr-18 2,307,600 -102,000 -3.07
APOLLOHOSP 26-Apr-18 717,000 -103,500 6.25

more

Arbitrage
Company Future Cash Basis
PAGEIND 24,846.30 24,707.55 138.75
MRF 79,404.10 79,320.00 84.10
BOSCHLTD 19,633.00 19,549.35 83.65
EICHERMOT 30,980.00 30,920.15 59.85
SHREECEM 17,192.50 17,141.90 50.60
NESTLEIND 9,189.00 9,145.55 43.45
MARUTI 9,107.95 9,077.65 30.30
OFSS 4,157.85 4,142.90 14.95
DALMIABHA 2,923.00 2,911.80 11.20
MCDOWELL-N 3,489.00 3,478.65 10.35
TCS 3,201.50 3,191.15 10.35
PEL 2,612.00 2,602.40 9.60
CONCOR 1,354.35 1,346.00 8.35
TATACOMM 628.90 620.90 8.00
JUBLFOOD 2,486.10 2,478.55 7.55
BAJFINANCE 1,918.70 1,913.30 5.40
BHARATFIN 1,124.90 1,119.50 5.40
MFSL 453.90 448.65 5.25
NIITTECH 941.00 936.10 4.90
TATAELXSI 1,113.30 1,108.40 4.90
BAJAJFINSV 5,390.00 5,385.20 4.80
HDFC 1,863.40 1,858.65 4.75
HEROMOTOCO 3,728.20 3,723.60 4.60
COLPAL 1,115.50 1,111.35 4.15
ASIANPAINT 1,169.00 1,165.00 4.00
CENTURYTEX 1,243.05 1,239.10 3.95
UBL 1,116.70 1,113.00 3.70
ESCORTS 970.50 966.85 3.65
M&M 805.50 801.90 3.60
TVSMOTOR 678.00 674.40 3.60
CEATLTD 1,608.95 1,605.45 3.50
RAYMOND 1,056.70 1,053.35 3.35
GAIL 338.70 335.35 3.35
UJJIVAN 396.80 393.65 3.15
BHARATFORG 753.60 750.80 2.80
TITAN 955.55 952.75 2.80
ULTRACEMCO 4,106.15 4,103.45 2.70
AMARAJABAT 848.00 845.35 2.65
LUPIN 793.00 790.35 2.65
AXISBANK 515.50 512.90 2.60
IBULHSGFIN 1,370.05 1,367.55 2.50
KOTAKBANK 1,156.40 1,153.90 2.50
JUSTDIAL 474.50 472.10 2.40
JSWSTEEL 325.10 322.85 2.25
WOCKPHARMA 765.10 762.95 2.15
GRASIM 1,106.25 1,104.15 2.10
STAR 638.55 636.50 2.05
SRTRANSFIN 1,581.00 1,578.95 2.05
HDFCBANK 1,941.00 1,939.00 2.00
SIEMENS 1,066.45 1,064.50 1.95
TATACHEM 740.00 738.05 1.95
TATAMOTORS 336.15 334.25 1.90
MGL 908.70 906.85 1.85
TECHM 667.05 665.20 1.85
SUNPHARMA 511.00 509.20 1.80
BATAINDIA 770.05 768.25 1.80
BIOCON 641.30 639.60 1.70
RBLBANK 510.50 508.90 1.60
VOLTAS 642.00 640.40 1.60
UPL 770.45 768.90 1.55
APOLLOHOSP 1,123.55 1,122.00 1.55
BEML 1,117.05 1,115.55 1.50
BPCL 378.00 376.55 1.45
ADANIPORTS 388.00 386.55 1.45
HINDZINC 330.35 328.95 1.40
HAVELLS 553.20 551.85 1.35
CHENNPETRO 329.45 328.15 1.30
DIVISLAB 1,181.00 1,179.75 1.25
SBIN 247.40 246.15 1.25
VGUARD 247.40 246.20 1.20
CANFINHOME 442.40 441.20 1.20
ARVIND 432.30 431.15 1.15
ICICIPRULI 381.00 379.85 1.15
MCX 772.00 770.85 1.15
CIPLA 585.50 584.40 1.10
HINDPETRO 302.60 301.50 1.10
REPCOHOME 616.00 614.90 1.10
GODREJIND 600.65 599.60 1.05
MARICO 321.30 320.30 1.00
CANBK 279.25 278.30 0.95
HEXAWARE 421.60 420.70 0.90
IOC 158.80 157.95 0.85
NBCC 212.40 211.60 0.80
RELCAPITAL 439.20 438.40 0.80
TORNTPOWER 239.20 238.45 0.75
PETRONET 241.00 240.30 0.70
KAJARIACER 563.30 562.60 0.70
MUTHOOTFIN 428.80 428.15 0.65
BEL 136.80 136.15 0.65
EQUITAS 153.40 152.80 0.60
GODFRYPHLP 891.10 890.55 0.55
GRANULES 108.60 108.05 0.55
ICICIBANK 290.15 289.60 0.55
ENGINERSIN 156.20 155.70 0.50
INFIBEAM 170.75 170.25 0.50
JINDALSTEL 260.55 260.05 0.50
L&TFH 170.50 170.00 0.50
ONGC 184.40 183.95 0.45
FEDERALBNK 98.65 98.20 0.45
KTKBANK 120.70 120.25 0.45
APOLLOTYRE 293.40 292.95 0.45
INFRATEL 336.40 335.95 0.45
NCC 134.50 134.05 0.45
PFC 86.30 85.90 0.40
RAMCOCEM 832.00 831.65 0.35
TATAMTRDVR 191.55 191.20 0.35
YESBANK 318.85 318.50 0.35
PNB 96.45 96.10 0.35
INDIACEM 154.35 154.00 0.35
IDEA 71.30 70.95 0.35
RECLTD 129.40 129.05 0.35
GODREJCP 1,116.10 1,115.75 0.35
TORNTPHARM 1,398.50 1,398.15 0.35
IGL 295.10 294.80 0.30
PTC 93.40 93.10 0.30
DISHTV 77.85 77.55 0.30
BANKBARODA 145.60 145.35 0.25
GSFC 131.50 131.25 0.25
IDBI 70.30 70.05 0.25
KPIT 235.00 234.75 0.25
SREINFRA 85.45 85.20 0.25
TATAPOWER 87.00 86.80 0.20
NHPC 28.20 28.00 0.20
CGPOWER 84.35 84.15 0.20
EXIDEIND 244.25 244.05 0.20
JISLJALEQS 114.85 114.65 0.20
UNIONBANK 96.85 96.65 0.20
DCBBANK 199.05 198.90 0.15
TV18BRDCST 67.65 67.50 0.15
MANAPPURAM 121.00 120.85 0.15
NATIONALUM 87.40 87.25 0.15
NMDC 125.40 125.25 0.15
GMRINFRA 20.10 19.95 0.15
ANDHRABANK 41.75 41.60 0.15
TATAGLOBAL 286.30 286.20 0.10
HCC 24.55 24.45 0.10
HDIL 41.15 41.05 0.10
IDFC 53.85 53.75 0.10
SYNDIBANK 57.15 57.05 0.10
ASHOKLEY 151.20 151.10 0.10
BALRAMCHIN 66.60 66.50 0.10
BHEL 88.55 88.45 0.10
INDIANB 311.40 311.30 0.10
ADANIPOWER 26.20 26.15 0.05
SUZLON 11.75 11.70 0.05
ALBK 50.50 50.45 0.05
IFCI 20.90 20.85 0.05
NTPC 177.60 177.55 0.05
IDFCBANK 49.35 49.35 0.00
RNAVAL 28.90 28.90 0.00
RCOM 20.80 20.80 0.00
SOUTHBANK 26.50 26.50 0.00
BANKINDIA 109.05 109.10 -0.05
MRPL 105.30 105.35 -0.05
ORIENTBANK 93.50 93.55 -0.05
JPASSOCIAT 21.20 21.25 -0.05
OIL 225.10 225.15 -0.05
LICHSGFIN 553.90 553.95 -0.05
DRREDDY 2,136.25 2,136.30 -0.05
BAJAJ-AUTO 2,857.85 2,857.95 -0.10
RELIANCE 942.20 942.30 -0.10
COALINDIA 283.10 283.20 -0.10
POWERGRID 208.00 208.10 -0.10
DHFL 591.00 591.10 -0.10
WIPRO 292.30 292.45 -0.15
SAIL 80.65 80.80 -0.15
ITC 277.20 277.35 -0.15
CUMMINSIND 736.50 736.70 -0.20
PVR 1,332.55 1,332.75 -0.20
TATASTEEL 621.70 621.95 -0.25
RPOWER 39.60 39.90 -0.30
CAPF 648.90 649.20 -0.30
IRB 263.55 263.90 -0.35
VEDL 311.35 311.70 -0.35
GLENMARK 564.85 565.25 -0.40
DLF 214.95 215.35 -0.40
ADANIENT 141.20 141.65 -0.45
AUROPHARMA 617.30 617.80 -0.50
CESC 1,048.70 1,049.20 -0.50
DABUR 357.85 358.35 -0.50
CADILAHC 387.10 387.65 -0.55
ZEEL 592.35 592.90 -0.55
HCLTECH 1,017.85 1,018.55 -0.70
BHARTIARTL 394.60 395.35 -0.75
AMBUJACEM 246.25 247.00 -0.75
KSCL 534.15 534.90 -0.75
MOTHERSUMI 347.10 347.90 -0.80
HINDUNILVR 1,453.35 1,454.20 -0.85
BALKRISIND 1,318.95 1,320.00 -1.05
HINDALCO 263.70 264.75 -1.05
MINDTREE 896.40 897.60 -1.20
PCJEWELLER 296.30 297.80 -1.50
CASTROLIND 202.65 204.20 -1.55
RELINFRA 463.45 465.05 -1.60
BRITANNIA 5,394.10 5,395.80 -1.70
JETAIRWAYS 620.05 621.85 -1.80
SUNTV 913.50 915.35 -1.85
CHOLAFIN 1,577.90 1,580.20 -2.30
BERGEPAINT 267.45 269.85 -2.40
PIDILITIND 1,056.00 1,058.40 -2.40
M&MFIN 518.00 520.70 -2.70
SRF 2,181.10 2,184.35 -3.25
INDIGO 1,483.35 1,486.70 -3.35
INFY 1,129.25 1,132.85 -3.60
LT 1,381.00 1,385.00 -4.00
AJANTPHARM 1,380.40 1,385.20 -4.80
ACC 1,566.40 1,571.35 -4.95
INDUSINDBK 1,826.85 1,832.95 -6.10
FORTIS 122.75 148.45 -25.70

Detailed View

Corporate Action
Stock Ex-Date Purpose
Fortis Health 19-Apr-18 Board Meeting
IndusInd Bank 19-Apr-18 Board Meeting
Reliance Power 19-Apr-18 Board Meeting
TCS 19-Apr-18 Board Meeting
Indiabulls Hsg 19-Apr-18 Board Meeting
HDFC Bank 19-Apr-18 Board Meeting
Bharti Infratel 19-Apr-18 Board Meeting
Reliance Infra 19-Apr-18 Board Meeting
Cholamandalam 19-Apr-18 Board Meeting
LIC Housing Fin 19-Apr-18 Board Meeting
Advance Decline Table
  Future Calls Puts
Advanced 103 (49%) 800 (13%) 457 (7%)
Declined 105 (50%) 979 (16%) 1,013 (16%)
Unchanged 1 (0%) 4,303 (71%) 4,689 (76%)
Total 209 6,082 6,159
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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