With Effect From 29 May 2015, seven additional securities will be introduced in Derivatives Segment of
NSE. National Stock Exchange of India vide their circular 039/2015 has notified the introduction of 7 additional contracts in F&O segment. At present, a total of 154 securities are allowed for trading in Futures and Options Segment of National Stock Exchange of India (NSE). With these the total number will increase to 161.
Additional Securities in F&O From 29 May 2015
1) DEWAN HOUSING FINANCE CORPORATION LIMITED (DHFL).
2) KAVERI SEED COMPANY LIMITED (KSCL).
3) AJANTA PHARMA LIMITED (AJANTPHARM).
4) BRITANNIA INDUSTRIES LIMITED (BRITANNIA).
5) THE SOUTH INDIAN BANK LIMITED (SOUTHBANK).
6) OIL INDIA LIMITED (OIL).
7) BHARAT ELECTRONICS LIMITED (BEL).
With these new 7 additional securities in f&o, the total available securities will be 161. Further details about the contract specifications will be announced by another circular one day before the introduction of these contracts for trading.
The market lot, scheme of strikes and quantity freeze limit of the above mentioned securities shall be informed to members on May 28, 2015 through a separate circular.
Introduction of these 7 additional securities in f&o based on the stock selection criteria as prescribed by SEBI vide master circular No CIR/MRD/DP/17/2014 dated May 20, 2014 and approval received from SEBI.
As can be seen from the list of additional securities in f&o segment to be introduced shortly, most of they are not very liquid in nature. For example in the security of BRITANNIA, the total traded volume on 05 May 2015 is just 86370 shares. Similarly for KAVERISEED it is even worse at around 40000 shares. At such low volumes it will be very difficult to benefit from hedging or arbitrage. Impact cost will be very high in these securities due to low liquidity and thin trading volumes.
Lot sizes and strikes prices are not yet announced which will be known on May 28, one day before the introduction of these securities.
Usually, the total contract size will be a minimum value of 2 lakhs. In the mean time, one can guess the approximate lot size of these 7 additional securities in f&o by dividing 2,00,000 with the market price of the security to be introduced.
source: NSE Circular