Professional Documents
Culture Documents
Functioning mechanism
GROUP 5
Product
Traded with
underlying
asset
Introduction
date
Index Futures
Sensex
June 9,2000
Index Options
Sensex
June 1,2001
Individual
Stock Option
Concerned
July 9, 2001
Company Stock
Individual
Stock futures
Concerned
November
Company Stock 9,2002
Weekly Option
4 Stocks
September
13,2004
Chhota (mini)
SENSEX
January 1, 2008
Currency
Futures
US Dollar
Rupee
October 1,2008
Trade details of
Derivatives in BSE
Index Futures
A futures contract is a standardized contract to buy or
sell a specific security at a future date at an agreed
price.
An index future, as the name suggests, is a future on
the index i.e. the underlying is the index itself. There
is no underlying security which is to be delivered to
fulfill the obligations as index futures are cash settled.
As other derivatives, the contract derives its value
from the underlying index.
The underlying indices are various eligible indices and
as permitted by SEBI.
Contract
Multiplier
BSXFUT
15
MSXFUT
TECKFUT
70
Sr.No
Product
BSE 30 S&P
BSE SENSEX
FUTURES
Content Period
Tick Size
Trading Hours
Final Settlement
1,2,3 Month
Rs. 0.25 in spread price terms for
S&P BSE SENSEX futures contracts
Rs. 0.05 in spread price terms for
S&P BSE-100 futures contracts
Rs. 1 in spread price terms for
other index futures contracts
9 .15 a.m to 3.30 p.m
Last Thursday of each contract
maturity month.
Note:
A. Business day is a day during
which the underlying stock market
is open for trading.
B. If expiry day is a holiday, then
the immediately preceding
business day.
Cash Settlement. On the last
trading day, the closing value of
the underlying index would be the
final settlement price of the
Index options
Options contract give its holder the right,
but not the obligation, to buy or sell
something on or before a specified date at
a stated price.
Generally, index options are European
style, being those option contracts that can
be exercised only on the expiration date.
The underlying indices for index options are
the various eligible indices as permitted by
SEBI.
STOCK OPTIONS
Options on individual stocks are options
contracts where the underlyings are
individual stocks.
Based on the eligibility criteria and subject
to the approval from SEBI, stocks are
selected on which options are introduced.
These contracts are cash settled and are
American style, being those option
contracts that can be exercised on or
before the expiration date.
Product
Aban Offshore
Ltd
ABB Ltd
ALOK
INDUSTRIES LTD.
Associated
Cement
Companys Ltd.
Axis Bank Ltd.
Bajaj Hindusthan
Ltd
Balrampur Chini
Mills Ltd
Bank Of Baroda
Bank Of India
Bharat Heavy
Electricals Ltd.
Product Code
Contract
Multiplier
ABOFUT
250
ABBFUT
250
ALIFUT
10000
ACCFUT
250
AXSFUT
250
BHLFUT
2000
BLCFUT
4000
BLCFUT
BOIFUT
250
500
BHEFUT
125
Content Period
Tick Size
Trading Hours
Final Settlement
1,2,3 Month
Rs.0.05
9 .15 a.m to 3.30 p.m
Last Thursday of each
contract maturity month.
Note:
A. Business day is a day
during which the underlying
stock market is open for
trading.
B. If expiry day is a holiday,
then the immediately
preceding business day.
Cash Settlement. On the last
trading day, the closing value
of the underlying stock is the
final settlement price of the
expiring futures contract