Introduction of mini derivative (Futures & Options) contract on Index (Sensex & Nifty)
Summary
SEBI introduces mini derivative contracts on the Sensex and Nifty indices following DMRC recommendations. The minimum contract size for these instruments is set at Rs. 1 lakh upon market introduction. Existing risk containment measures applicable to standard index derivatives are extended to cover these mini contracts.
Text
it has been decided to introduce mini derivative contract on Index (Sensex and Nifty).
the mini derivative contract on Index (Sensex and Nifty) shall have a minimum contract size of Rs. 1 lakh at the time of its introduction in the market.
The existing risk containment and other measures applicable for existing exchange traded equity Index derivative contracts shall also be extended to the mini derivative contract on Index.
This circular is being issued in exercise of powers conferred by sub-section (1) of Section 11 of the Securities and Exchange Board of India Act, 1992, to promote the development of the securities market.
The Circular shall come into force from the date of the circular.
Source: SecMarx — Introduction of mini derivative (Futures & Options) contract on Index (Sensex & Nifty). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.