Business Daily from THE HINDU group of publications
Thursday, Dec 04, 2008
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Business Daily from THE HINDU group of publications Thursday, Dec 04, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Stock Exchanges Markets - Derivatives Markets
Our Bureau Chennai, Dec. 3 NSE has revised upwards the market lot for 243 stocks in the derivative segment. According to the NSE Web site, these changes would take effect on the farther month contracts – March 2009 series. It also revised the lot sizes for Sterling Biotech and Lupin downwards. According to a NSE circular, the downward revision is applicable for all contracts, including those expiring this month. Sterling Biotech’s market lot has come down to 1,250 from 2,500 and Lupin’s to 350 from 700. The upward revision ranges from two to 14 times. Puravankara Projects, which tumbled quite sharply in the recent meltdown, saw its market lot zooming 14 times to 7,000 from current 500. The stocks whose market lot rose10 times are Brigade Enterprises, Development Credit Bank, IVR Prime Urban Developers, Kingfisher Airlines, Parsvanath Developers and Unitech. ‘Bad move’With markets already witnessing low participations from retail segment, traders are of the opinion that this move could further alienate traders from F&O segment. According to Mr Siddharth Bhamre, Fund Manager, Derivatives & Equities, Angel Broking, this move will affect the trading volumes in derivative segment. As the market participants, particularly retail investors and a few high networth individuals, lost heavily in the recent market crash, they may not be in a position to fork out higher margin requirements due to the rise in market lot. “While allowing cross-margining would help boost trading volumes in the F&O segment, the rise in market lot would negate the positive impact of that,” Mr Bhamre added. An F&O dealer in Chennai said, SEBI should introduce a uniform market lot size of 100 on the underlying. According to him, this would attract more participation from traders and lead to better price discovery. Exchanges review the contract size/value of derivative contracts periodically based on prescribed minimum value of Rs 2 lakh, according to SEBI guidelines. SEBI extends cross margin facility to all Derivatives market expands in first half: BIS report Mini, currency futures trade active More Stories on : Stock Exchanges | Derivatives Markets | Stock Markets
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