Sensex mini
S&P BSE SENSEX
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BSE Ltd. Vision
S&P BSE SENSEX mini

S&P BSE SENSEX®_mini- Chotta Contract Bada Sense
Notice for ‘mini’ contracts on the S&P BSE SENSEX

Stock Exchange launches S&P BSE SENSEXmini Derivatives Contracts

Overview

For the first time in India, mini Futures and Options contracts are being offered. These are new products from BSE based on the leading Indian equity Index 'S&P BSE SENSEX '. These are primarily to enable retail investors to participate in the growing derivatives market. S&P BSE SENSEX is the barometer of the Indian capital market and is widely tracked in the global financial markets.

Benefits
  • Since mini futures and options have market lot of FIVE, lower capital outlay and lower trading costs
  • Smaller size allows for more precise hedging and flexible trading.
  • Possible arbitrage between existing S&P BSE SENSEX Futures (bigger market lot) & S&P BSE SENSEX mini Futures (market lot 5).
  • S&P BSE SENSEX constitutes 30 leading companies of diverse industries covering 12 broad sectors of the Indian economy. Provides macro view of economy to retail as well as institutional investors.


Performance
  • S&P BSE SENSEX has risen in value by more than 585% between May 2003 and December 2007.
  • The value of S&P BSE SENSEX has risen by over 38% from May 31, 2007 to December 2007 and has crossed 20,000 on numerous occasions.
  • The constituents of S&P BSE SENSEX account for around 42% of the total BSE market capitalisation as on December 13, 2007



Specifications

Parameter Index Futures Index Options
Security Name S&P BSE SENSEX Mini Futures S&P BSE SENSEX Mini Options
Security Symbol MSX MSX
Underlying S&P BSE SENSEX S&P BSE SENSEX
Market Lot 5 5
Exercise Style - European
Contract Period 1, 2 & 3 months 1, 2 & 3 months & 1, 2 weeks
Tick size 0.05 i.e. 5 paisa 0.05 i.e. 5 paisa
Price Quotation In index points (S&P BSE SENSEX) In index points (S&P BSE SENSEX)
No. of Strike Prices - Shall have a minimum of 3 strikes (1 in the money, 1 near the money, 1 out of the money).
Strike Price Interval - Same as for existing contracts
Trading Hours 9:55 a.m. to 3:30 p.m. 9:55 a.m. to 3:30 p.m.
Last Trading/Expiration Day Last Thursday of the contract month. If it is a holiday, then the immediately preceding business day.Note: Business day is a day during which the underlying equity market is open for trading. Same as futures
Final Settlement
Cash Settlement. On the last trading day, the final settlement price of the expiring futures contract would be based on the closing value of the underlying S&P BSE SENSEX.The following algorithm is currently being used for calculating closing value of the individual scrips including the scrips constituting S&P BSE SENSEX in the Equity Segment:
  • Weighted average price of all the trades in the last thirty minutes of the continuous trading session.
  • If there are no trades during the last thirty minutes, then the last traded price in the continuous trading session would be taken as the official closing price.
Same as futures
Exercise Notice Time - It would be a specified time (Exercise Session) on the last trading day of the contract. All in-the money options by certain specified ticks would be deemed to be exercised on the day of expiry.