Contact Your Financial Adviser Money Making MC
17
April 2017
The
Securities and Exchange Board of India (Sebi) on Thursday said stock exchanges
operating in international financial services centres (IFSCs) may allow dealing
in equity derivatives.
"Based
on the recommendations of the Risk Management Review Committee of SEBI, it has
been decided to specify derivatives on equity shares of a company incorporated
in India as permissible security," the market regulator's circular said.
"...the
recognised stock exchanges operating in IFSCs may permit dealing in derivatives
on equity shares, subject to prior approval of Sebi," it added.
According
to the circular, the Market Wide Position Limit (MWPL) for "derivatives on
equity shares" will be equal to 10 per cent of the number of shares held
by non-promoters in the relevant underlying security (free-float holding).
Further,
the MWPL for "derivatives on equity shares" in recognised stock
exchanges in IFSCs would be reckoned separately from that in recognised stock
exchanges in domestic market, the circular said. The Total Investment & Insurance Solutions
"Sebi's
circular to allow trading in equity derivatives of a company incorporated in
India by stock exchanges operating in IFSCs is a welcome move and will allow
the IFSCs to move ahead at an even faster pace," said Ajay Pandey, MD and
Group CEO, GIFT City.The Total Investment
& Insurance Solutions
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