Procedure for re-introduction of derivatives contracts and modified position limits

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....r Clearing House / Corporation. Dear Sir, Sub: Procedure for re-introduction of derivatives contracts and modified position limits This circular is in continuation of SEBI Circular No. SMDRP/DC/CIR-13/02 dated December 18, 2002, Circular No SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004, Circular No SEBI/DNPD/Cir-27/2004/07/16 dated July 16, 2004 and Circular No DNPD/Cir-29/2005 dated Se....

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....d December 18, 2002. 2. The exit criteria shall be more flexible as compared to entry criteria in order to prevent frequent entry and exit of stocks in the derivatives segment. Therefore, for a stock to become ineligible, the criteria for market wide position limit shall be relaxed upto 10% of the criteria applicable for the stock to become eligible for derivatives trading. The other eligibilit....

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.... time would continue to be subject to SEBI approval. II. POSITION LIMITS 1. Market wide position limits for single stock futures and stock option contracts The market wide position limit for single stock futures and stock option contracts prescribed under sub-clause 4(i) of clause II of Circular No. SEBI/DNPD/Cir- 26/2004/07/16 dated July 16, 2004 stands modified. The market wide position....

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.... stand modified in the following manner- a. Trading Member/FII/Mutual Fund Position limits in equity index option contracts: The trading member/FII/mutual fund position limits in equity index option contracts shall be higher of: * Rs. 500 Crore or * 15% of the total open interest in the market in equity index option contracts. This limit would ....