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 index is required to fulfill the eligibility criteria even after derivatives trading on the index has begun.

An Option to buy is called Call option and option to sell is called Put option. The concept of value-at-risk shall be used in calculating required level of initial margins.

Capital Span Margin

What is Mimimum Contract Size? The Member is also required to enter into the Member-client agreement with all his clients. These persons who represent the TM are known as Authorised Persons. With the amendment in the definition of ”securities” under SC R A to include derivative contracts in the definition of securitiesderivatives trading takes place under the provisions of the Securities Contracts Regulation Act, and the Securities and Exchange Board of India Act, 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: Further, every trading member is required to appoint at least two approved users who have passed the certification programme.

The stock shall be chosen from 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. Designed especially for traders looking to tap the profit opportunities of volatile markets. Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash.

Select Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol. 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 derivatives contracts are permitted by SEBI? Only the approved users are permitted to operate the derivatives trading terminal. 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? SEBI has not specified any networth requirement for a trading member.

The various types of membership in the derivatives market are as follows: These contracts derive their value from the value of the underlying index. 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.

Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June 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.

Every clearing member both clearing members and self-clearing members has to maintain at least Rs. The member is required to get the Know-your-client form filled by every client.

Balance Sheet Networth Requirements: Similarly, the options jargin, which are based on some index, are known as Index options contract. The price at which the option is to be exercised is called Strike price or Exercise price. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria.

Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. If the index does mafgin fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed filr, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities.

What is a Futures Contract? The fils asset could include securities, an index of prices of securities martin. The contract expires on a pre-specified date which is called the expiry date of the 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.


The market wide position limit in the stock shall not be less than Rs. Index Option Contracts are generally European Style options i. What are requirements for a Member with regard to the conduct of his business? Subsequently, the Exchanges were authorized to align the contracts sizes as and when required in line with the methodology prescribed by SEBI. On expiry, futures can be settled by delivery of the underlying asset or cash. The clearing members are required to furnish an auditor’s certificate for the networth every 6 months to the exchange.

What is the regulatory framework of derivatives markets in India? The derivatives exchange recognizes the persons recommended by the Trading Member and only such fille are authorized to act as sales personnel of the TM. This request for exercise is submitted to the Exchange, which randomly assigns the exercise request to the sellers of the options, who are obligated to settle the terms of the contract within a specified time frame.

Indices that represent flle whole market are broad based indices and those that represent a particular sector are sectoral indices. What is the structure of deravatives markets in India? Further, if an option that is exercisable margib or before the expiry date is called American option and one that is exercisable only on expiry date, is called European option.

F&O Market Snapshot

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 or of a particular sector of the economy.

Securities In Ban Period for Dec The margih member must educate his client on the risks r&o derivatives by providing a copy of the Risk disclosure document to the client.

Sectoral Indices were permitted for derivatives trading in December A stock can be included for derivatives trading as soon as it becomes eligible. Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date.