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.