Tuesday, May 13, 2008

Introduction of mini derivative (Futures & Options) contract

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES AND OPTIONS SEGMENT

CIRCULAR

Circular No.: NSE/F&O/118/2007

Download No. NSE/FAOP/9972

Date: December 27, 2007



Dear Members,



Sub: Introduction of mini derivative (Futures & Options) contract

on S&P CNX Nifty index



The Exchange is in receipt of a SEBI circular no. SEBI/DNPD/Cir- 33/2007 dated December 27, 2007, regarding Introduction of mini derivative (Futures & Options) contract S&P CNX Nifty index. The copy of SEBI circular is enclosed as Annexure I.



Members are requested to take note of the above.



Further details in this regards shall be intimated by the Exchange through subsequent circulars.





For National Stock Exchange of India Ltd.





Suprabhat Lala

Asst. Vice President

Annexure I

General Manager

Derivatives and New Products Department



SEBI/DNPD/Cir- 33/2007

December 27, 2007



To

The Managing Director / Executive Director

of Derivative Segment of NSE & BSE

and their Clearing House / Corporation.



Dear Sir,



Sub: Introduction of mini derivative (Futures & Options) contract

on Index (Sensex & Nifty)



Pursuant to the recommendation of the Derivatives Market Review Committee (DMRC) headed by Professor M. Rammohan Rao, it has been decided to introduce mini derivative contract on Index (Sensex and Nifty).



I. CONTRACT SIZE

To begin with, the mini derivative contract on Index (Sensex and Nifty) shall have a minimum contract size of Rs. 1 lakh at the time of its introduction in the market.



II. RISK CONTAINMENT AND OTHER MEASURES

The existing risk containment and other measures applicable for existing exchange traded equity Index derivative contracts shall also be extended to the mini derivative contract on Index. The risk containment and other measures shall be the same as specified for the Index Futures and Index Option contracts in SEBI Circular Nos. IES/DC CIR-4/99 dated July 28, 1999, IES/DC/CIR-5/ 00 dated December 11, 2000, SMDRP/DC/CIR- 7/01 dated June 20, 2001, SMD/DC/CIR-11/ 02 dated February 12, 2002, SEBI/DNPD/Cir- 17/2003/10/ 29 dated October 29, 2003, SEBI/DNPD/Cir- 26/32004/ 07/16 dated July 16, 2004 SEBI/DNPD/Cir- 27/2004/07/ 16 dated July 16,2004, DNPD/Cir-29/ 2005 dated September 14, 2005 and SEBI/DNPD/Cir- 31/2006 dated September 22, 2006.



This circular is being issued in exercise of powers conferred by sub-section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992, to promote the development of the securities market.



This circular is available on SEBI website at www.sebi.gov. in, under the category "Derivatives – Circulars". The Circular shall come into force from the date of the circular.

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