Bombay Stock Exchange to launch

The Stock Exchange, Mumbai is pleased to announce that the BSE Derivatives Segment will commence trading in the " Sensex Futures" from June 9, 2000. The Index futures based on the benchmark index of Indian Capital markets, the Sensex, shall allow the market participants to manage their portfolio risks efficiently.

The BSE 30 Sensex would be the underlying stock index with the contract multiplier of 50 and tick size of 0.10 (equivalent to Rs. 5.00). The Contract would be valid for a period of three months with last Thursday of the contract month being the last trading day. The Final settlement will be on the last trading day and the final settlement price will be calculated based on a set of 120 cash sensex values taken in the last half an hour of trading. The 20 highest and 20 lowest values will be ignored and the final settlement price will be computed as an average of remaining 80 values.

The Stock Exchange, Mumbai has developed the online Derivatives Trading and Settlement Software ( DTSS). The System has been designed keeping in mind not only the prevailing market practices but also the needs of Indian Capital Market Participants. The comprehensive system takes care of trading, settlement, risk management, default handling and collateral management.

It is mandatory for every member of the Derivatives Segment to have minimum two approved users who will be allowed to operate on the Derivatives workstation. It is mandatory for the approved users to pass derivatives certification tests. BSE has been conducting SEBI approved ON-LINE DERIVATIVES CERTIFICATION TESTS in co-ordination with NIIT.

To complement the above efforts and also to spread awareness about Derivatives amongst investors and intermediaries across the country, the BSE Training Institute has conducted 40 seminars covering 18 locations and over 6000 participants

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