CAPITAL DAILY MARGIN FILE IN VALUE AS ON Symbol, Expiry Date, Instrument Type, Lot Size, Initial Margin, Exposure Margin, Total Margin. Samco’s SPAN Margin Calculator is the first Online tool in India which gives you Equity Derivatives Margin Calculator – NSE F&O Market Segments. Swastika Investmart gives Span Margin file on a daily basis. Futures and Options (f&o) traders need to have a sufficient amount of margin in their accounts to.

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The various types of membership in the derivatives market are as follows: These persons who represent the TM are known as Authorised Persons.

These contracts derive their value from the value of the underlying index. A stock on which Stock Option and single Stock Future contracts are proposed to be introduced is required to fulfill the following broad eligibility criteria: The member is required to get the Know-your-client form filled by every client. The clearing members are required to furnish an auditor’s certificate for the networth every 6 months to the exchange.

Futures contract based on an index i. Securities In Ban Period for Dec By its very nature, index cannot be delivered on maturity of the Index futures or Index option contracts therefore, these contracts are essentially cash settled on Expiry. What is the regulatory framework of derivatives markets in India? What is Mimimum Contract Size?

Some of the important eligibility conditions are – 1. The level of initial margin on Index Futures Contracts shall be related to the risk of loss on the position. The derivatives exchange recognizes the persons recommended by the Trading Member and only such persons are authorized to act mxrgin sales personnel of the TM.

Balance Sheet Networth Requirements: What is a Futures Contract? Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a separate segment of an existing Stock Exchange. Select The market wide position limit in the stock shall margiin be less than Rs.

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Capital Span Margin

In Februarythe Exchanges were advised to re-align the contracts sizes of existing derivative contracts to Rs. What are the various membership categories in the martin market? An Option to buy is called Call option and option to sell is called Fild option. What derivatives contracts are permitted by SEBI? On expiry, futures can be settled by delivery of the underlying asset or cash. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities.

Designed especially for traders looking to tap the profit opportunities of volatile markets. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria.

F&O Market Snapshot

If the index does not fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued. However, if the stock does not fulfill the eligibility criteria for 3 consecutive months after being admitted to derivatives trading, then derivative contracts on such a stock would be discontinued.

Sectoral Indices were permitted for derivatives trading in December What are requirements for a Member with regard to the conduct of his business? The term “Derivative” indicates that it has no independent value, i. The underlying asset could include securities, an index of prices of securities etc.

Under Securities Contracts Regulations Act, options on securities has been defined as “option in securities” means a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell, securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities. What is an Option Contract? The networth requirement is Rs. Every clearing member both clearing members and self-clearing members has to maintain at least Rs.


Derivative trading to take place through an online screen based Trading System. Indices that represent the whole market are broad based indices and those that represent a particular sector are sectoral indices.

What is the eligibility criterion for stocks on which derivatives trading may be permitted? Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date.

SEBI has prescribed a networth requirement of Rs. An index, in turn derives its value from the prices of securities that constitute the index and is created to represent the sentiments of the market as a whole fioe of a particular sector of the economy. A stock can be included for derivatives trading as soon as it becomes eligible. The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract Regulation Act, had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs.

What is the structure of deravatives markets in India? The stock shall be chosen marfin amongst the top stocks in terms of average daily market capitalisation and average daily traded value in the previous six month on a rolling basis.

Subsequently, the Exchanges were authorized to align the contracts sizes as and when required in line with the methodology prescribed by SEBI.