From July 15, exchanges must require at least 5% of the
contract’s notional value, instead of 10%. That
rate was imposed in October 2008 after the Lehman Brothers
The SEBI took the decision after discussions with market
An executive at a futures commission merchant in Mumbai
welcomed the decision, saying the higher margins had hit the
retail market hardest and depressed trading of single stock
futures and options.
In 2008, some 225.72m single stock futures and options were
traded, but this fell to 161.05m trades in the following
The National Stock Exchange of India hosts 99% of listed single
stock derivative trading in India. Its rival the Bombay Stock
Exchange had hoped a more attractive fee structure, introduced
in December 2009, would help it win back market share, but it
has so far been unsuccessful.
Colin Packham, Sydney firstname.lastname@example.org