SEBI made these big changes in the rules for entry and exit of shares in the derivatives segment, see details here
SEBI : The Securities and Exchange Board of India (Sebi) issued a revised requirement for the movement of equities in and out of the derivatives segment. The twelve month moving average for median quarter sigma order size (MQSOS) which had stood at ₹ 25 lakh for the last six months has been raised to ₹ 75 lakh in line with the new amendment.
In a notice published Friday, August 30, the market regulator stated that the thresholds previously applied to restrict attendance in the future market have been reconsidered for the value of equities with sufficient volume. It said that the criteria were last evaluated in the year 2018.
Advanced Requirement Revised Rules
For this reason, the market-wide position limit for the last six months for a stock was increased by the regulator from 500 crore to 1500 crore.
Also, Sebi has also provided that, on rolling basis, the cash market average daily delivery value of a stock for the six months must be less than 35 crores. Currently – this threshold is 10 crores in value.
Blank Purchase Order Form – although unlike the Index derivative instruments which are settled by cash settlement, the single stock derivatives are physical settlement at expiry.
Regulatory agency has not modified the standards of average daily market capitalization (ADC) and average daily traded value (ADTV) of the top 500 sites at any time however.
Further, as per Sebi equities meeting the fresh conditions imposed on eligibility on the performance of cash market would be allowed to the derivatives market.
If on a rolling basis, for the evaluation of the stock market for the previous six months it fails to meet the MLR for three consecutive months, which will include the sixth month, that stock shall exit the derivatives market. In addition, there will be no further contracts issued.
Sebi also said new strikes will be available during the remainder of the life of the contract and that open contracts may trade until expiry.
The changed criterion will apply only to those equities which have traded for at least six months from the date of their respective listing.
