Procedure for re-introduction of derivatives contracts and modified position limits

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..... rporation. Dear Sir, Sub: Procedure for re-introduction of derivatives contracts and modified position limits This circular is in continuation of SEBI Circular No. SMDRP/DC/CIR-13/02 dated December 18, 2002, Circular No SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004, Circular No SEBI/DNPD/Cir-27/2004/07/16 dated July 16, 2004 and Circular No DNPD/Cir-29/2005 dated September 14, 2005 is .....

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..... 02. 2. The exit criteria shall be more flexible as compared to entry criteria in order to prevent frequent entry and exit of stocks in the derivatives segment. Therefore, for a stock to become ineligible, the criteria for market wide position limit shall be relaxed upto 10% of the criteria applicable for the stock to become eligible for derivatives trading. The other eligibility conditions woul .....

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..... nue to be subject to SEBI approval. II. POSITION LIMITS 1. Market wide position limits for single stock futures and stock option contracts The market wide position limit for single stock futures and stock option contracts prescribed under sub-clause 4(i) of clause II of Circular No. SEBI/DNPD/Cir- 26/2004/07/16 dated July 16, 2004 stands modified. The market wide position limit shal .....

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..... fied in the following manner a. Trading Member/FII/Mutual Fund Position limits in equity index option contracts: The trading member/FII/mutual fund position limits in equity index option contracts shall be higher of: ₹ 500 Crore or 15% of the total open interest in the market in equity index option contracts. This limit would be applicable on open positions in all .....

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..... issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contracts(regulation) Act 1956, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours sincerely, N.PARAKH - Circular - Trade Notice - Public Notice - Instru .....

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