SEBI allows options trading in $-rupee spot rates on SEs
30 July 2010
The Securities and Exchange Board of India (SEBI) has decided to permit the introduction of options on dollar-rupee spot rate on currency derivatives segment of stock exchanges with immediate effect. Eligible stock exchanges must, however, obtain SEBI permission before starting such option trading.
For option trading, the premium should be quoted in rupee terms. However, the outstanding positions would be in dollar terms, SEBI said.
Trading hours will be from 9 a.m. to 5 p.m. and the minimum size of the contract will be $1000.
As of now, three serial monthly contracts followed by three quarterly contracts of the cycle - March/June/September/December are available.
A minimum of three `in-the-money', three `out-of the-money' and one `near-the-money' strikes would be provided for all available contracts.
The contract would be settled in cash in rupee. The expiry or last trading day for the options contract would be two working days prior to the last working day of the expiry month.