Tuesday, April 21, 2009

[Investors Please Listen] Eligibility criteria of stocks on which stock options and single stock futures could be introduced


NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

Circular No: NSE/F&O/029/2009                                                      April 21, 2009                                          

Download No: NSE/FAOP/12295

 

Dear Members,

 

Eligibility criteria of stocks on which stock options and single stock futures could be introduced

 

This is in partial modification to SEBI circular SMDRP/DC/CIR-13/02 dated December 18, 2002, SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004 and SEBI/DNPD/Cir-31/2006 dated September 22, 2006 regarding criteria for selecting the stock in derivatives segment.

 

As a surveillance measure SEBI has required the Exchanges to use the following stock's selection criteria with immediate effect:

 

1.   The eligibility criteria for inclusion of scrips in F&O segment shall be as under:

 

·         The stock shall be chosen from amongst the top 500 stocks in terms of average daily market capitalization and average daily traded value in the previous six months on a rolling basis.

 

·         The stock's median quarter sigma order size over the last six months shall be not less than Rs. 5 lakhs.

 

·         The market wide position limit (MWPL) in the stock shall not be less than Rs. 100 crores.

 

2.   The criteria for exclusion of scrips in F&O segment shall be as under:

 

For an existing F&O stock, the continued eligibility criteria is that market wide position limit in the stock shall not be less than Rs. 60 crores and stock's median quarter-sigma order size over the last six months shall be not less than Rs. 2 lakh. The stock shall be excluded if the above criteria is not fulfilled for consecutively three months.

 

3.   Further, once the stock is excluded from the F&O list, it shall not be considered for re-inclusion for a period of one year.

 

For and on behalf of

National Stock Exchange of India Limited

 

Suprabhat Lala

Asst. Vice President


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Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
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