The Hindu Business Line : NSE cuts margins in F&O segment

THE National Stock Exchange (NSE) has reduced margins on 12 securities in the future and options segment from 12 per cent to 6 per cent from Thursday.

The securities on which margins have been reduced include Bank of Baroda, BPCL, HCL Technologies, HPCL, Infosys Technologies, L&T, Nalco, ONGC, Oriental Bank of Commerce, Reliance Industries, Tata Motors and Wipro.

The reduction in the margins means that investors have to pay lower margins (or funds) when they buy these securities. For instance, reducing the margins from 12 per cent to 6 per cent in the F&O segment, investor can take more positions with the same amount of money.

Brokers said by this move, NSE's aim is to bring in more investors (especially retail) into the derivatives market.

Earlier, the Exchange had reduced the contract size of several securities in F&O segment to attract more investors.

In a separate circular, NSE said it has removed the 10 per cent additional margin on 25 scrips in the cash segment from today. Some of the scrips on which this margin has been removed include — Reliance Industries, Maruti, ONGC, L&T, Wipro, HPCL and BPCL.

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