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SENSEX ®Chotta Contract Bada Sense
mini		Notice for ‘mini’ contracts on the SENSEX

Bombay Stock Exchange launches SENSEXmini DERIVATIVES Contracts


OverviewFor the first time in India, Bombay Stock Exchange offers mini Futures and Options contracts on the leading Indian equity Index 'SENSEX ' for retail investors to participate in the ever growing Derivatives market. The SENSEX is the barometer of the Indian Capital Markets and widely tracked in the global financial markets.

Benefits
  • Since mini futures and options have market lot of FIVE, lower capital outlay and lower          trading costs
  • Smaller size allows for more precise hedging and flexible trading.
  • Possible arbitrage between existing SENSEX Futures (bigger market lot) & SENSEX          mini Futures (market lot 5).
  • SENSEX constitutes 30 leading companies of diverse industries covering 12 broad          sectors of the Indian economy. Provides macro view of economy to retail as well as          institutional investors.


    • Performance
  • The SENSEX has risen in value by more than 585% since its low in May 2003.
  • The value of SENSEX has risen by over 38% since May 31, 2007 and has crossed          20,000 on numerous occasions.
  • The constituents of SENSEX account for around 42% of the total BSE market
        capitalisation as on December 13, 2007
    •  
     
    Specifications
    ParameterIndex FuturesIndex Options
    Security NameSensex Mini FuturesSensex Mini Options
    Security SymbolMSXMSX
    UnderlyingSENSEXSENSEX
    Market Lot55
    Exercise Style-European
    Contract Period1, 2 & 3 months1, 2 & 3 months & 1, 2 weeks
    Tick size0.05 i.e. 5 paisa0.05 i.e. 5 paisa
    Price QuotationIn index points (SENSEX)In index points (SENSEX)
    No. of Strike Prices-Shall have a minimum of 3 strikes (1 in the money, 1 near the money, 1 out of the money).
    Strike Price Interval-Same as for existing contracts
    Trading Hours9:55 a.m. to 3:30 p.m.9:55 a.m. to 3:30 p.m.
    Last Trading/Expiration DayLast Thursday of the contract month. If it is a holiday, then the immediately preceding business day.Note: Business day is a day during which the underlying equity market is open for trading.Same as futures
    Final SettlementCash Settlement. On the last trading day, the final settlement price of the expiring futures contract would be based on the closing value of the underlying SENSEX.The following algorithm is currently being used for calculating closing value of the individual scrips including the scrips constituting BSE SENSEX in the Equity Segment:
    • Weighted average price of all the trades in the last thirty minutes of the continuous trading session.
    • If there are no trades during the last thirty minutes, then the last traded price in the continuous trading session would be taken as the official closing price.    		Same as futures
    Exercise Notice Time-It would be a specified time (Exercise Session) on the last trading day of the contract. All in-the money options by certain specified ticks would be deemed to be exercised on the day of expiry.