Introduction of Index options with tenure up to 5 years
Summary
SEBI permits recognized stock exchanges to introduce index options on Sensex and Nifty with a tenure of up to five years. This permission is conditional upon the exchange maintaining eight semi-annual contracts in sequence and having an appropriate risk management framework. The circular was issued under Section 11(1) of the SEBI Act, 1992, and became effective immediately upon its date.
Text
It has now been decided to permit Stock Exchanges to introduce option contracts on Sensex and Nifty with tenure up to 5 years subject to the condition that;
There are 8 semi annual contracts of the cycle June/December in sequence to 3 serial monthly contracts and 3 quarterly contracts of the cycle March/June/September/December.
The Exchange has in place the appropriate risk management framework for such derivative contracts.
This circular is issued in exercise of the powers conferred under 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.
The circular shall come into force from the date of the circular.
Source: SecMarx — Introduction of Index options with tenure up to 5 years. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.