Introduction of Index options with longer tenure

Introduction of Index options with longer tenure

11 Jan 2008

SEBI issued a circular regarding this.

1. The SEBI Derivatives Market Review Committee (DMRC) headed by Professor M.
Rammohan Rao, recommended the introduction of new derivative products in the
Indian market, with option contracts on indices and stocks with life/tenure of up to 5 years (60 months) being one of them.

2. To begin with, it has been decided to launch long term options on Sensex and Nifty
with tenures of upto 3 years. The options cycle shall be as under:
a. The 3 serial month contracts would continue to exist.
b. The following 3 quarterly months of the cycle Mar/Jun/Sep/Dec would be
available.
c. After these, 5 following semi-annual months of the cycle Jun/Dec would be
available, so that at any point in time there would be options contract with
atleast 3 year tenure available for investors.

3. The risk containment and other measures applicable for existing exchange traded
equity Index option contracts shall be extended suitably to long term option contracts on Index.



SEBI Circular No. SEBI/DNPD/Cir-34/2008
January 11, 2008