Attention of the members is drawn to SEBI Press Release PR No. 297/2007 dated November 14, 2007, announcing the introduction of 7 new derivatives products in the Indian Capital Market.
In this connection, we are pleased to inform the members of the F&O Segment about the introduction of mini Futures & Options contracts on the SENSEX® in Market Lot of FIVE in addition to the existing contracts available on the SENSEX® in a larger market lot. These contracts would be available for 3 contract months viz. Near (January), Middle (February) and Far (March) on a rolling basis.
The detailed contract specifications for the SENSEX® mini Futures and Options contracts are enclosed as Annexure. It may be noted that except for the change in Market Lot, all other contract specifications remain the same as for the existing F&O contracts on the SENSEX®.
It is expected that trading in the mini contract will offer the following benefits :-
· mini futures and options have market lot of FIVE, hence lower capital outlay (for margin) and lower trading costs
· smaller contract value allows for more precise hedging and flexible trading.
· more arbitrage opportunities available
· easy access by the retail investor to the SENSEX® that constitutes 30 leading companies of diverse industries covering 12 broad sectors of the Indian economy thus poviding macro view of the economy to investors.
As far as Risk Management measures are concerned, all the existing risk management measures adopted for present Index Futures and Options contracts on the SENSEX®, would be adopted for this mini contract too, since the underlying remains the same. The members may note that the SENSEX® mini contract will also have Weekly Options as is presently available for the existing Options contracts on the SENSEX®.
SENSEX® mini Futures and Options contracts would be available for trading w.e.f. January 1, 2008, onwards.
In case members require any clarifications, they may please contact the following officials:
|
Name of the Official |
Hotline |
Mobile Nos. |
|
Girish Vyas |
8502 |
9833379947 |
|
Piyush Kapoor |
8285 |
9819318072 |
Suniel Vichare Khushro A. Bulsara
Chief Gen. Manager General Manager
Encl : Annexure containing Contract specifications
|