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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