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BSE launches six additional derivative contracts

Revises circuit filter for 30 other companies

BS Reporter Mumbai
Asia's oldest stock exchange announced on Thursday that it would make available derivative instruments on six additional securities.

These would span companies in sectors including Auto, Real Estate and Healthcare. Futures and options contracts would be available on Amtek Auto, Bosch, Engineers India, Indiabulls Housing Finance, Strides Arcolab and Wockhardt; according to a notice on the exchange website

"Trading members are requested to note that futures and options contracts for below mentioned underlying securities shall be available for trading in BSE Derivatives segment with effect from November 28, 2014," it said.

A derivative contract allows investors to hedge against volatility in the value of his holdings.

 

"The contract details of the above six underlying securities added shall be available in derivatives contract master file generated on end of day of November 27, 2014," it added.

Separately, the exchange also announced that it would look to change the circuit filter for 30 companies. The circuit filter has been revised to 10% for nine securities, to five% for 14 securities and two% for seven others.

A circuit filter is a limit on the amount by which price can move on a given day. Such filters help to avoid undue volatility in a stock.

The companies which have seen a revision include Godavari Drugs Ltd, Mahalaxmi Seamless Ltd, Kriti Industries India Ltd and Elegant Marbles & Grani Industries Ltd.

"Trading Members of the Exchange are hereby informed that the circuit filters has/have been changed from their existing levels in the below mentioned scrip/s with effect from November 21, 2014," said the notice.

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First Published: Nov 20 2014 | 6:28 PM IST

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