Volatility Index derivatives permitted subject to a one year index track record, robust risk management and specified submission requirements. SEBI permits exchanges to introduce Volatility Index derivative contracts only if the underlying index has at least a one year track record and the exchange has an appropriate risk management framework; exchanges must submit contract specifications, position and exercise limits, margins, stated economic purpose, anticipated market development contribution, safeguards and risk protection mechanisms, infrastructure and surveillance details, settlement procedures, and one year of back testing of margin calculation using specified option deltas.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Volatility Index derivatives permitted subject to a one year index track record, robust risk management and specified submission requirements.
SEBI permits exchanges to introduce Volatility Index derivative contracts only if the underlying index has at least a one year track record and the exchange has an appropriate risk management framework; exchanges must submit contract specifications, position and exercise limits, margins, stated economic purpose, anticipated market development contribution, safeguards and risk protection mechanisms, infrastructure and surveillance details, settlement procedures, and one year of back testing of margin calculation using specified option deltas.
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