CAPITAL DAILY MARGIN FILE IN VALUE AS ON Symbol, Expiry Date, Instrument Type, Lot Size, Initial Margin, Exposure Margin, Total Margin. Samco’s SPAN Margin Calculator is the first Online tool in India which gives you Equity Derivatives Margin Calculator – NSE F&O Market Segments. Swastika Investmart gives Span Margin file on a daily basis. Futures and Options (f&o) traders need to have a sufficient amount of margin in their accounts to.
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What is the structure of deravatives markets in India? These contracts derive their value from the value of the underlying index. In other words, Derivative means a forward, future, option or any other hybrid contract of magin 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.
The term “Derivative” indicates that it has no independent value, i. The index is required to fulfill the eligibility criteria even after derivatives trading on the index has begun. The contract expires on a pre-specified date which is called the expiry date of the contract. Select Derivative trading to take place through an online screen based Trading System.
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What is an Option Contract? What are the various membership categories in the derivatives market?
If the index does not fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria.
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: Index Option Contracts are generally European Style options i. The market wide position limit in the stock shall not be less than Rs.
Sectoral Indices were permitted for derivatives trading in December As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash. SEBI has prescribed a networth requirement of Rs.
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. SEBI has not specified any networth requirement for a trading member.
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Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. A amrgin can be included for derivatives trading as soon as it becomes eligible.
The Member is also required to enter into the Member-client agreement with all his clients. What are requirements for a Member with regard to the conduct of his business? On expiry, futures can be settled by delivery of fils underlying asset or cash. What is the regulatory framework of derivatives markets in India? What derivatives contracts are permitted by SEBI?
The derivatives member must educate his client on the risks of derivatives by providing a copy of the Risk disclosure document to the client. What is Mimimum Contract Size?
Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June An index, in turn derives its value flle 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.
The price at which the option is to be exercised is called Strike price or Exercise price. What is the eligibility criterion for stocks on which derivatives trading v&o be permitted? Every clearing member both clearing members and self-clearing members has to maintain at least Rs.
The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract Regulation Act, had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs. The following conditions stipulations have been laid by SEBI on the regulation of sales practices: Some of the important eligibility conditions are – 1.
Futures contract based on an index i. Subsequently, the Exchanges were authorized to r&o the contracts sizes as and when required in line with the methodology prescribed by SEBI. Only the approved users are permitted to operate the derivatives trading terminal. 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. 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 t&o a specified time frame.
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. Reproduction of news articles, photos, videos dile any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.
The clearing members are required to furnish an auditor’s certificate for the networth every 6 months to the exchange. The underlying asset could include securities, an index of prices of securities etc. ,argin networth requirement is Rs. Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date.
Under Securities Contracts Regulations Act, options on c&o 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.
Balance Sheet Networth Requirements: These persons who represent the TM are known as Authorised Persons. Indices that marfin the whole market are broad based indices and those that represent a particular sector are sectoral indices.