Introduction of Derivative Contracts on Foreign Stock Indices

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....f Derivative Contracts on Foreign Stock Indices 1. It has been decided to permit Stock Exchanges to introduce derivative contracts (Futures and Options) on foreign stock indices in the equity derivatives segment in accordance with the Guidelines mentioned in Annexure-1. 2. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of....

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....available on any of the stock exchanges listed at Annexure-A ii. In terms of trading volumes (number of contracts), derivatives on that Index figure among the top 15 Index derivatives globally. OR That Index has a market capitalization of at least USD 100 billion. iii. That index is "broad based". An Index is broad based if : a. The Index consists of a ....

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....in Indian rupees. 4. Risk Management Framework The stock exchange shall submit the risk management framework along with its application for introduction of derivatives on foreign stock indices. 5. Position Limits The Trading Member/Mutual Funds position limits (higher of Rs. 500 crore or 15% of the total open interest in Index derivatives) as well as the disclosure requirement for clie....

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....eign stock indices shall be subject to the appropriate enforcement actions, as applicable to the market for any securities. 9. Trading Trading in derivatives on Foreign Stock Indices shall be restricted to residents in India. ANNEXURE A S No. Exchange   Americas 1. BM&FBOVESPA 2. Chicago Board Options Exchange (CBOE) 3. CME Group 4. ICE Futur....