Futures and options trading will be allowed in RBL Bank, Nalco and three other companies on both the BSE and the NSE from May 26.
The other three companies are Hindustan Construction Company, Kajaria Ceramics, and Ramco Cements.
“Trading members are requested to note that futures and options contracts (F&O) for five underlying securities shall be available for trading in the equity derivatives segment with effect from May 26, 2017,” the BSE said in a circular today.
The National Stock Exchange had anounced on Thursday that it would allow F&O contracts in these five companies.
Equity derivative’s value is at least partly derived from one or more underlying equity securities.
Options and futures are by far the most common equity derivative.