Sebi discontinues mini derivatives contracts on bourses
Quotes

Sebi discontinues mini derivatives contracts on bourses

Last Updated: Tuesday, November 20, 2012, 19:53
 
 Comment 0
 
Sebi discontinues mini derivatives contracts on bourses
Mumbai: Market regulator Sebi Tuesday said it has decided to discontinue mini derivatives contracts on Sensex and Nifty indices, to discourage small investors from getting attracted to this segment.

The latest move revises Securities and Exchange Board of India's decision in December 2007 that allowed mini derivative contracts. Such contracts -- having a minimum size of Rs 1 lakh -- were allowed on leading indices, Sensex and Nifty.

"With a view to ensure that small/retail investors are not attracted towards derivatives segment, it has now been decided to discontinue mini derivatives contracts on Index (Sensex and Nifty)," Sebi said in a circular Tuesday.

Directing stock exchanges to implement the latest circular, Sebi said that no fresh mini derivatives contracts shall be issued.

"However, the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months," the regulator noted.

Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.


PTI



First Published: Tuesday, November 20, 2012, 19:53


Comments


comments powered by Disqus
India`s top ten billionaires
India`s top ten billionaires
Pradhan Mantri Jan Dhan Yojana - In Pics
Pradhan Mantri Jan Dhan Yojana - In Pics
Apple Smartwatch unveiled
Apple Smartwatch unveiled
Apple iPhone 6, iPhone 6 plus
Apple iPhone 6, iPhone 6 plus
Samsung Galaxy Tab 4 Nook
Samsung Galaxy Tab 4 Nook

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved