Derivative Trading


The exchange may consider introducing derivative market contracts on an index if the stocks contributing to 80 % weight age of the index are individually eligible for derivative trading. However, no single ineligible stocks in the index should have a weight age of more than 5 % in the index. The above criteria is applied every month, if the index fails to meet the eligibility criteria for three months consecutively, then no fresh month contract would be issued on that index, However, the existing unexpired contracts will be permitted to trade till expiry and new strikes can also be introduced in the existing contracts.


The Maximum Brokerage chargeable by a trading member in relation to trades effected in the contracts admitted to dealing on the Futures and options segment of NSE is fixed at 2.5 % of the contract value in case of index futures and stock futures. In case of index options and stock options it is 2.5 % of notional value of the contract (strike price + premium x quantity), exclusive of statutory levies. The transaction charges payable to the exchange by the trading member for the trades executed by on the Futures and Options segment are fixed at the rate of Rs.2 per lakh of turnover (0.002%) subject to a minimum of Rs. 1,00,000 per year. However for the transactions in the options sub-segment the transaction charges are levied on the premium value at the rate of 10.05 % (each side) instead of on the strike price as levied earlier. Further to this, trading members have been advised to charge brokerage from their clients on the premium price (traded price) rather than strike price. The trading members contribute to Investor Protection Fund of Future and Options segment at the rate of Rs. 10 per Crore of Turnover (0.0001 %).


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