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RECENT DEVELOPMENTS

At present Derivative Trading has been permitted by the SEBI n derivative

segment ! the BSE and the "#$ segment ! the NSE% The nat&res ! derivative

'ntra'ts permitted are(

) Inde* "&t&res 'ntra'ts intrd&'ed in +&ne, -$$$,

) Inde* ptins intrd&'ed in +&ne, -$$., and

) St'/ ptins intrd&'ed in +&0y -$$.%

The minim&m 'ntra't si1e ! a derivative 'ntra't is Rs%- 0a/hs% Besides the

minim&m 'ntra't si1e, there is a stip&0atin !r the 0t si1e ! a derivative

'ntra't% The 0t si1e re!ers t n&mber ! &nder0ying se'&rities in ne 'ntra't%

The 0t si1e ! the &nder0ying individ&a0 se'&rity sh&0d be in m&0tip0es ! .$$

and tra'tins, i! any sh&0d be r&nded ! t ne*t higher m&0tip0e ! .$$% Thisre2&irement a0ng 3ith the re2&irement ! minim&m 'ntra't si1e !rm the basis

!r arriving at the 0t si1e ! 'ntra't%

Apart !rm the abve, there are mar/et 3ide 0imits a0s% The mar/et 3ide 0imit

!r inde* prd&'ts in NIL% "r st'/ spe'i!i' prd&'ts it is ! pen psitins% B&t,

!r ptin and !&t&res the !003ing 3ide 0imits have been !i*ed%

) 4$ times the average n&mber ! shares traded dai0y, d&ring the previ&s

'a0endar mnth in the 'ash segment ! the e*'hange%

Or

) .$5 ! the n&mber ! shares he0d by nn6prmters, i%e%, .$5 ! the !ree

!0at in terms ! n&mber ! shares ! a 'mpany%

ELI7IBILIT8 CONDITIONS

The SEBI has 0aid d3n sme e0igibi0ity 'nditins !r Derivative

e*'hange9Segment and it:s '0earing Crpratin9;&se% They are as !003s(

) The Derivatives E*'hange9Segment sha00 have n60ine s&rvei00an'e 'apabi0ity

t mnitr psitins, pri'es, and v0&mes n a rea0 time basis s as t deter

mar/et manip&0atin%

) The Derivatives E*'hange9Segment sh&0d have arrangements !r

disseminatin ! in!rmatin ab&t trades, 2&antities and 2&tes n a rea0 time

basis thr&gh at 0east t3 in!rmatin6vending net3r/s, 3hi'h are easi0y

a''essib0e t investrs a'rss the '&ntry%

) The Derivatives E*'hange9Segment sh&0d have arbitratin and investrgrievan'es redressa0 me'hanism perative !rm a00 the !&r areas9regins ! the

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'&ntry%

) The Derivatives E*'hange9Segment sh&0d have satis!a'try system !

mnitring investr 'mp0aints and preventing irreg&0arities in trading%

) The Derivative Segment ! the E*'hange 3&0d have a separate Investr

Prte'tin "&nd%

) The C0earing Crpratin9;&se sha00 per!rm !&00 innvatin, i%e%, the C0earing

Crpratin9;&se sha00 interpse itse0! bet3een bth 0egs ! every trade,

be'ming the 0ega0 '&nter party t bth r a0ternative0y sh&0d prvide an

&n'nditina0 g&arantee !r sett0ement ! a00 trades%

) The C0earing Crpratin9;&se sha00 have the 'apa'ity t mnitr the vera00

psitin ! Members a'rss bth derivatives mar/et and the &nder0ying se'&ritiesmar/et !r thse Members 3h are parti'ipating in bth%

) The 0eve0 ! initia0 margin n Inde* "&t&res Cntra'ts sha00 be re0ated t the

ris/ ! 0ss n the psitin% The 'n'ept ! va0&e6at6ris/ sha00 be &sed in

'a0'&0ating re2&ired 0eve0 r initia0 margins% The initia0 margins sh&0d be 0arge

en&gh t 'ver the ne6day 0ss that 'an be en'&ntered n the psitin n

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) Investr?s mney has t be /ept separate at a00 0eve0s and is permitted t be

&sed n0y against the 0iabi0ity ! the Investr and is nt avai0ab0e t the trading

member r '0earing member r even any ther investr%

) The Trading Member is re2&ired t prvide every investr 3ith a ris/ dis'0s&re

d'&ment, 3hi'h 3i00 dis'0se the ris/s, ass'iated 3ith the derivatives trading

s that investrs 'an ta/e a 'ns'i&s de'isin t trade in derivatives%

) Investr 3&0d get the 'ntra't nte d&0y time stamped !r re'eipt ! the

rder and e*e'&tin ! the rder% The rder 3i00 be e*e'&ted 3ith the identity !

the '0ient and 3ith&t '0ient ID rder 3i00 nt be a''epted by the system% Theinvestr '&0d a0s demand the re'n!irmatin s0ip 3ith his ID in s&pprt ! the

'ntra't nte% This 3i00 prte'ts him !rm the ris/ ! pri'e !av&r, i! any,

e*tended by the Member%

) In the derivative mar/ets, a00 mney paid by the Investr t3ards margins n

a00 pen psitins is /ept in tr&st 3ith the C0earing ;&se9 C0earing Crpratin

and in the event ! de!a&0t ! the Trading r C0earing Member the am&nts paid

by the '0ient t3ards margins are segregated and nt &ti0i1ed t3ards the

de!a&0t ! the member% ;3ever, in the event ! a de!a&0t ! a member, 0sses

s&!!ered by the Investr, i! any, n sett0ed9 '0sed &t psitin are 'mpensated

!rm the Investr Prte'tin "&nd, as per the r&0es, bye0a3s and reg&0atin !

the derivative segment ! the e*'hanges%