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SENSEX NIFTY

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Index Futures NIFTY

NIFTY 30-Aug-18

11464.30 83.15 (0.73%) Add to Watchlist

Open 11,394.75 Avg. Price 11,439.98
High 11,478.15 Contracts Traded 0
Low 11,390.20 Turnover (Rs.lakhs) 694,129.37
Prev. Close 11,381.15 Market Lot 0
Spot Price 11,435.10 Open Interest 28,952,850
Open Int PCR 1.73 Open Int. Chg 899,325
Prev OI PCR 1.69 OI Chg % 3.21
Bid Price 11,464.30 Offer Price 11,464.95
Bid Qty 150 Offer Qty 75
Rollover % 5.84%
Option Chain NIFTY
CALLS PUTS
Premium Volume Open Int Stike Price Open Int Volume Premium
248.95
(28.23%)
5,325 45,150
(-3.83%)
11,250.00 677,175
(30.70%)
576,975 42.70
(-35.84%)
210.85
(33.20%)
1,951,350 1,638,150
(-2.44%)
11,300.00 4,272,375
(11.01%)
8,041,575 53.30
(-33.99%)
174.50
(36.97%)
233,775 97,800
(-23.52%)
11,350.00 530,250
(20.81%)
892,125 64.65
(-33.79%)
140.50
(41.06%)
7,684,500 2,954,625
(1.13%)
11,400.00 3,341,550
(31.10%)
9,900,750 80.00
(-32.77%)
109.15
(45.05%)
1,404,225 266,175
(-24.18%)
11,450.00 217,500
(40.16%)
576,300 98.35
(-31.13%)
82.60
(50.59%)
10,183,275 4,290,225
(-5.77%)
11,500.00 1,614,300
(33.14%)
3,034,950 119.95
(-30.32%)
60.00
(57.69%)
910,575 449,700
(5.41%)
11,550.00 28,425
(-5.01%)
15,525 149.90
(-26.93%)
41.80
(58.33%)
7,233,600 3,121,950
(10.28%)
11,600.00 337,800
(26.30%)
543,225 178.00
(-26.51%)
27.45
(51.66%)
470,850 291,375
(53.50%)
11,650.00 1,425
(11.76%)
450 214.00
(-22.28%)
18.45
(57.02%)
4,763,850 2,746,725
(12.32%)
11,700.00 315,225
(38.39%)
265,650 248.35
(-23.30%)

Detailed View

F&O Stats
Futures CMP Change %Chg
BALKRISIND 30-Aug-18 1,340.00 110.60 +9.00%
SUNPHARMA 30-Aug-18 608.40 43.35 +7.67%
DHFL 30-Aug-18 660.85 35.55 +5.69%
APOLLOHOSP 30-Aug-18 1,125.00 55.85 +5.22%
DLF 30-Aug-18 203.05 8.40 +4.32%
RELCAPITAL 30-Aug-18 437.65 17.85 +4.25%
UBL 30-Aug-18 1,340.50 46.40 +3.59%

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FII / DII Stats
Sector Wise Open Interest & Volume

Sector

Index

Index CMP (% chg) Open Int (% chg)
BALKRISIND 1,340.00 +9.00% 1,410,400 +29.54%
CEATLTD 1,445.25 +3.20% 1,339,100 +11.06%
AMARAJABAT 848.00 +2.17% 1,110,200 +6.59%
APOLLOTYRE 267.50 +1.77% 11,595,000 +3.81%
MRF 74,220.00 +0.79% 39,500 +2.70%
EXIDEIND 293.25 +1.35% 8,364,000 +2.60%
HEROMOTOCO 3,274.80 -0.99% 1,604,000 +1.60%
TATAMOTORS 248.90 -0.08% 80,619,000 +1.57%
TVSMOTOR 521.45 +0.19% 8,389,000 +1.12%
M&M 954.95 -0.12% 15,412,000 +1.11%
TATAMTRDVR 136.15 -0.44% 30,231,600 +1.00%
EICHERMOT 28,996.00 +1.68% 271,500 +0.77%
ESCORTS 879.00 +2.14% 5,196,400 +0.38%
BOSCHLTD 19,239.75 -0.04% 124,740 +0.27%
BAJAJ-AUTO 2,655.00 +0.43% 3,631,250 -0.08%
ASHOKLEY 126.70 +0.40% 66,348,000 -0.13%
MARUTI 9,143.00 +1.17% 2,549,400 -0.40%
MOTHERSUMI 299.40 +2.32% 14,377,600 -2.23%

Detailed View

Global Indices
Index CMP Change % Chg
US Markets
Nasdaq 7,819.71 -19.40 -0.25
European Markets
FTSE 100 7,634.44 -8.01 -0.10
CAC 40 5,417.25 4.93 0.09
DAX 12,383.99 25.25 0.20
Asian Markets
Nikkei 225 22,356.08 498.65 2.23
Straits Times 3,242.87 -2.47 -0.08
Hang Seng 27,752.93 -183.64 -0.66
Taiwan Weighted 10,824.23 75.31 0.70
KOSPI 2,258.91 10.46 0.46
SET Composite 1,695.35 -10.61 -0.63
Jakarta Composite 5,769.87 -91.38 -1.58
Shanghai Composite 2,781.16 -4.71 -0.17
SGX Nifty 11,467.50 -2.50 -0.02

Detailed View

Open Interest Breakup
Symbol Total OI Change % Chg
ASHOKLEY 30-Aug-18 114,332,000 208,000 -0.23
ADANIENT 30-Aug-18 29,396,000 -68,000 4.50
ALBK 30-Aug-18 28,941,000 10,802,000 4.75
ANDHRABANK 30-Aug-18 27,079,000 1,599,000 1.80
ARVIND 30-Aug-18 19,602,000 844,000 0.18
HEXAWARE 30-Aug-18 4,629,000 210,000 21.18
ACC 30-Aug-18 2,645,600 46,800 6.28
APOLLOHOSP 30-Aug-18 2,503,500 437,500 59.55

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Arbitrage
Company Future Cash Basis
MRF 74,220.00 73,819.80 400.20
PAGEIND 33,410.00 33,231.85 178.15
SHREECEM 17,325.55 17,266.55 59.00
BOSCHLTD 19,239.75 19,194.80 44.95
NESTLEIND 10,900.10 10,856.95 43.15
BRITANNIA 6,500.00 6,459.50 40.50
OFSS 4,037.40 4,017.90 19.50
PEL 2,851.50 2,833.75 17.75
DALMIABHA 2,609.90 2,594.45 15.45
BAJFINANCE 2,842.75 2,830.20 12.55
RAYMOND 775.20 764.70 10.50
MARUTI 9,143.00 9,132.60 10.40
ASIANPAINT 1,404.80 1,395.10 9.70
DRREDDY 2,288.00 2,278.45 9.55
TATAELXSI 1,443.20 1,434.10 9.10
BAJAJ-AUTO 2,655.00 2,646.40 8.60
HEROMOTOCO 3,274.80 3,266.35 8.45
CEATLTD 1,445.25 1,437.15 8.10
HDFCBANK 2,097.15 2,089.10 8.05
TORNTPHARM 1,718.35 1,710.80 7.55
GODFRYPHLP 852.00 844.65 7.35
SUNPHARMA 608.40 601.80 6.60
JUBLFOOD 1,513.50 1,507.10 6.40
HDFC 1,947.85 1,941.50 6.35
LT 1,259.00 1,253.25 5.75
BALKRISIND 1,340.00 1,334.65 5.35
HINDUNILVR 1,749.50 1,744.25 5.25
SRF 1,939.15 1,933.90 5.25
TATACOMM 570.60 565.65 4.95
TCS 2,008.40 2,003.55 4.85
SRTRANSFIN 1,324.85 1,320.10 4.75
CHOLAFIN 1,476.60 1,471.90 4.70
M&M 954.95 950.45 4.50
COLPAL 1,135.05 1,130.60 4.45
DIVISLAB 1,159.00 1,154.55 4.45
UBL 1,340.50 1,336.05 4.45
GODREJCP 1,299.00 1,294.75 4.25
SIEMENS 1,011.00 1,006.80 4.20
GRASIM 990.80 986.60 4.20
IBULHSGFIN 1,295.00 1,291.05 3.95
AJANTPHARM 1,172.00 1,168.20 3.80
CENTURYTEX 916.50 912.80 3.70
BEML 797.65 793.95 3.70
EICHERMOT 28,996.00 28,992.35 3.65
RELIANCE 1,214.00 1,210.60 3.40
RAMCOCEM 671.25 667.90 3.35
BHARATFORG 622.30 618.95 3.35
CESC 912.65 909.40 3.25
ESCORTS 879.00 875.80 3.20
WOCKPHARMA 612.95 609.75 3.20
GODREJIND 606.70 603.70 3.00
TITAN 928.55 925.60 2.95
PVR 1,316.45 1,313.55 2.90
AXISBANK 620.95 618.05 2.90
VOLTAS 616.60 613.75 2.85
INFY 1,411.00 1,408.30 2.70
AUROPHARMA 634.00 631.35 2.65
DHFL 660.85 658.20 2.65
ICICIPRULI 401.95 399.30 2.65
CIPLA 645.30 642.75 2.55
KOTAKBANK 1,295.25 1,293.00 2.25
JETAIRWAYS 285.65 283.45 2.20
PETRONET 224.25 222.10 2.15
NIITTECH 1,339.40 1,337.35 2.05
TVSMOTOR 521.45 519.40 2.05
CADILAHC 341.90 340.00 1.90
CHENNPETRO 311.40 309.50 1.90
YESBANK 384.40 382.50 1.90
CUMMINSIND 674.15 672.50 1.65
BIOCON 591.00 589.40 1.60
BPCL 378.25 376.65 1.60
OIL 209.20 207.60 1.60
ADANIPORTS 374.70 373.15 1.55
TATACHEM 679.20 677.75 1.45
MOTHERSUMI 299.40 297.95 1.45
ACC 1,564.95 1,563.55 1.40
TATAGLOBAL 238.90 237.55 1.35
RELINFRA 410.20 408.85 1.35
MARICO 365.70 364.35 1.35
TATASTEEL 580.30 578.95 1.35
INFIBEAM 200.10 198.90 1.20
SBIN 296.05 294.90 1.15
EXIDEIND 293.25 292.10 1.15
INFRATEL 285.00 283.90 1.10
CONCOR 643.65 642.55 1.10
CANFINHOME 315.80 314.70 1.10
AMBUJACEM 227.40 226.35 1.05
MUTHOOTFIN 411.70 410.65 1.05
UPL 611.50 610.45 1.05
ZEEL 515.00 513.95 1.05
UJJIVAN 346.10 345.15 0.95
VGUARD 215.65 214.85 0.80
DCBBANK 166.60 165.80 0.80
BALRAMCHIN 73.00 72.25 0.75
CANBK 271.35 270.65 0.70
LICHSGFIN 547.85 547.15 0.70
CASTROLIND 155.65 154.95 0.70
TATAMTRDVR 136.15 135.45 0.70
ASHOKLEY 126.70 126.00 0.70
NCC 100.50 99.80 0.70
KTKBANK 119.85 119.15 0.70
INDIANB 342.60 341.95 0.65
M&MFIN 488.10 487.45 0.65
AMARAJABAT 848.00 847.35 0.65
BANKBARODA 146.95 146.30 0.65
HAVELLS 686.55 685.90 0.65
EQUITAS 142.80 142.20 0.60
NMDC 102.65 102.05 0.60
RECLTD 112.95 112.35 0.60
UNIONBANK 85.95 85.35 0.60
APOLLOTYRE 267.50 266.95 0.55
HINDPETRO 270.60 270.05 0.55
TORNTPOWER 228.70 228.15 0.55
GSFC 112.10 111.60 0.50
MFSL 468.00 467.50 0.50
INDUSINDBK 1,998.00 1,997.60 0.40
JISLJALEQS 83.65 83.25 0.40
BANKINDIA 90.85 90.45 0.40
RELCAPITAL 437.65 437.25 0.40
INDIACEM 111.15 110.80 0.35
ORIENTBANK 78.20 77.85 0.35
IDBI 60.70 60.35 0.35
SREINFRA 50.30 49.95 0.35
JUSTDIAL 573.95 573.65 0.30
RBLBANK 564.45 564.15 0.30
ENGINERSIN 120.15 119.85 0.30
IRB 191.25 190.95 0.30
MRPL 81.15 80.85 0.30
NBCC 72.65 72.35 0.30
SYNDIBANK 38.90 38.60 0.30
NTPC 157.20 156.90 0.30
DLF 203.05 202.80 0.25
HINDALCO 221.70 221.45 0.25
MINDTREE 1,010.00 1,009.75 0.25
PCJEWELLER 101.30 101.05 0.25
TATAPOWER 69.00 68.75 0.25
BHEL 72.45 72.25 0.20
IDFC 50.10 49.90 0.20
NHPC 25.15 25.00 0.15
SAIL 77.55 77.40 0.15
HCC 11.80 11.70 0.10
SOUTHBANK 18.00 17.90 0.10
ANDHRABANK 32.30 32.20 0.10
ONGC 166.35 166.25 0.10
TATAMOTORS 248.90 248.80 0.10
TECHM 672.85 672.80 0.05
BEL 117.65 117.60 0.05
VEDL 215.15 215.10 0.05
RPOWER 32.85 32.80 0.05
JPASSOCIAT 13.05 13.00 0.05
SUZLON 7.20 7.15 0.05
DABUR 453.00 453.00 0.00
TV18BRDCST 47.90 47.90 0.00
IFCI 16.25 16.25 0.00
JINDALSTEL 199.50 199.50 0.00
NATIONALUM 70.20 70.25 -0.05
RCOM 20.60 20.65 -0.05
ADANIPOWER 31.65 31.70 -0.05
GMRINFRA 17.80 17.85 -0.05
BHARTIARTL 366.95 367.00 -0.05
POWERGRID 187.85 187.90 -0.05
WIPRO 285.00 285.05 -0.05
IDFCBANK 44.45 44.55 -0.10
IDEA 51.90 52.00 -0.10
ITC 307.75 307.90 -0.15
BHARATFIN 1,218.00 1,218.15 -0.15
STAR 420.10 420.30 -0.20
ALBK 39.70 39.95 -0.25
CGPOWER 59.90 60.15 -0.25
DISHTV 67.10 67.35 -0.25
GRANULES 104.55 104.80 -0.25
MCDOWELL-N 625.00 625.25 -0.25
PFC 83.00 83.25 -0.25
FEDERALBNK 88.50 88.80 -0.30
KSCL 621.60 621.95 -0.35
PNB 79.50 79.90 -0.40
ARVIND 396.15 396.55 -0.40
COALINDIA 282.20 282.65 -0.45
GLENMARK 584.25 584.70 -0.45
JSWSTEEL 340.65 341.10 -0.45
MANAPPURAM 103.20 103.70 -0.50
BATAINDIA 1,004.00 1,004.55 -0.55
HEXAWARE 483.10 483.75 -0.65
KPIT 295.00 295.70 -0.70
ADANIENT 201.60 202.30 -0.70
ICICIBANK 331.60 332.45 -0.85
BERGEPAINT 323.10 324.00 -0.90
CAPF 596.60 597.50 -0.90
GAIL 378.90 379.80 -0.90
MGL 941.05 941.95 -0.90
L&TFH 177.80 179.15 -1.35
INDIGO 1,048.90 1,050.55 -1.65
IOC 159.00 160.70 -1.70
PIDILITIND 1,118.00 1,119.95 -1.95
KAJARIACER 413.50 415.50 -2.00
BAJAJFINSV 7,110.00 7,112.70 -2.70
IGL 282.15 285.05 -2.90
PTC 80.20 83.20 -3.00
SUNTV 775.70 778.95 -3.25
HCLTECH 996.05 999.70 -3.65
LUPIN 832.05 836.75 -4.70
ULTRACEMCO 4,293.65 4,299.10 -5.45
APOLLOHOSP 1,125.00 1,131.20 -6.20
HINDZINC 278.00 285.15 -7.15
MCX 845.25 854.80 -9.55
REPCOHOME 599.00 610.20 -11.20

Detailed View

Corporate Action
Stock Ex-Date Purpose
Allahabad Bank 14-Aug-18 Board Meeting
Grasim 14-Aug-18 Board Meeting
GMR Infra 14-Aug-18 Board Meeting
IDBI Bank 14-Aug-18 Board Meeting
Infibeam Avenue 14-Aug-18 Board Meeting
Sun Pharma 14-Aug-18 Board Meeting
Oracle Fin Serv 14-Aug-18 AGM
Larsen 14-Aug-18 Dividends
Chennai Petro 14-Aug-18 Dividends
Maruti Suzuki 14-Aug-18 Dividends
Advance Decline Table
  Future Calls Puts
Advanced 172 (83%) 1,098 (19%) 223 (4%)
Declined 33 (16%) 624 (11%) 1,303 (23%)
Unchanged 1 (0%) 4,144 (71%) 4,254 (74%)
Total 206 5,866 5,780
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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