The Bombay Stock Exchange (BSE) has received more than 200 applications for membership rights to the derivatives trading segment from existing BSE members and institutions. This over-whelming response is likely to swell the exchange's kitty by more than Rs 70 crore.
The exchange also made a detail presentation to the Securities and Exchange Board of India (Sebi) on Index Futures. The exchange, has in-principle cleared between 75-80 applications. Officials from Sebi have already visited the exchange premises, last Friday to sort out last-minute details.
Dr Manoj Vaish, newly appointed chief executive officer (CEO) of the BSE derivatives segment said that the exchanges was ready to kick-start derivatives trading soon. "We already have more than 50 memberships required as per Sebi guidlines to commence Index Futures. Further of the 200 odd applications, the participation from the institutions is quite encouraging as they account for nearly 50 per cent" said Dr Vaish.
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As per Sebi guidelines, a clearing member will need minimum Rs 3 crore of networth while a trading members requires Rs 50 lakhs as networth. For the clearing membership, the exchange will be levying additional Rs 50 lakhs as security deposit, Rs 8 lakh as one-time charge and Rs 0.50 lakh as annual subscription. Similarly for the trading membership, the exchange will levy Rs 10 lakh as security deposit, Rs 3 lakh as one-time charge and Rs 0.25 lakh as annual fees.
Adding further Dr Vaish said "the Sensex is the only real Index which truely represents the Indian markets. The commencement of the Index Futures would strengthen the risk management for the investors, especially foreign institutional investors (FIIs) as they would be able to manage risk appropriately."
An investor would be able to trade on Index Futures based on the key BSE 30 Sensex stocks. The contract will be of 30/60/90 day tenure and in multiples of Rs 50. The price will be quoted in terms of Sensex points and each tick-size will be of 0.1 Sensex points or Rs 5 each. The trading of Index Futures will be paralled to the cash segment and will be available for daily and life time price limit facility. Approximately 6-7 per cent margins will be levied on each trades.