<p>As per a Sebi circular, Indian exchanges will be able to provide trading in derivatives contracts of these global indices.<br /><br />Interestingly, LSE, with whom two Indian exchanges NSE and MCX SX have tied up for cross listing of their indices, is not on the list approved by Sebi for the new guidelines.<br /><br />“It has been decided to permit stock exchanges to introduce derivatives contracts (Future and Options) on foreign stock indices in the equity derivatives segment,” Sebi said in a circular. The index should have a market capitalisation of at least $100 billion and it should consist of at least 10 constituent stocks.<br /><br />“No single constituent stock (should have) more than 25 per cent of the weight, computed <br />in terms of free float market capitalisation, in the index,” it said. Sebi further said that after introduction of derivatives on a particular stock index, if that index fails to meet the eligibility criteria for three months consecutively, no fresh contract shall be introduced on that index.<br /><br />The trading in derivatives on foreign indices would be restricted to Indian residents only. <br /><br />The Sebi today also allowed indices of Tokyo Stock Exchange, Hong Kong Exchanges, among others, to trade in Indian bourses.</p>
<p>As per a Sebi circular, Indian exchanges will be able to provide trading in derivatives contracts of these global indices.<br /><br />Interestingly, LSE, with whom two Indian exchanges NSE and MCX SX have tied up for cross listing of their indices, is not on the list approved by Sebi for the new guidelines.<br /><br />“It has been decided to permit stock exchanges to introduce derivatives contracts (Future and Options) on foreign stock indices in the equity derivatives segment,” Sebi said in a circular. The index should have a market capitalisation of at least $100 billion and it should consist of at least 10 constituent stocks.<br /><br />“No single constituent stock (should have) more than 25 per cent of the weight, computed <br />in terms of free float market capitalisation, in the index,” it said. Sebi further said that after introduction of derivatives on a particular stock index, if that index fails to meet the eligibility criteria for three months consecutively, no fresh contract shall be introduced on that index.<br /><br />The trading in derivatives on foreign indices would be restricted to Indian residents only. <br /><br />The Sebi today also allowed indices of Tokyo Stock Exchange, Hong Kong Exchanges, among others, to trade in Indian bourses.</p>