Derivatives on corporate bond indices permitted, enabling futures with prescribed index, trading and risk management safeguards. Permits cash settled futures on indices of corporate debt securities rated AA+ and above, subject to SEBI approval of index methodology, contract specifications, trading, clearing and settlement mechanisms, and a clearing corporation defined risk management framework. Index composition rules impose issuer level aggregation, concentration caps, minimum issuers and periodic review. Contract design requirements cover minimum contract value at introduction, trading hours, tenors, quotation and settlement conventions, position limits by participant category, price bands, and margining based on a one day 99.9% VaR with additional extreme loss and spread margins.
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Provisions expressly mentioned in the judgment/order text.
Derivatives on corporate bond indices permitted, enabling futures with prescribed index, trading and risk management safeguards.
Permits cash settled futures on indices of corporate debt securities rated AA+ and above, subject to SEBI approval of index methodology, contract specifications, trading, clearing and settlement mechanisms, and a clearing corporation defined risk management framework. Index composition rules impose issuer level aggregation, concentration caps, minimum issuers and periodic review. Contract design requirements cover minimum contract value at introduction, trading hours, tenors, quotation and settlement conventions, position limits by participant category, price bands, and margining based on a one day 99.9% VaR with additional extreme loss and spread margins.
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