BSE allows derivatives trading in more stocks

Following an approval from market regulator SEBI, the Bombay Stock Exchange Ltd (BSE ) on Thursday announced the introduction of 135 additional stocks for trading in its equity derivatives segment.

BSE will be introducing 135 additional eligible scrips to its existing list of 84 scrips in BSE equity derivatives segment, having expiry in August 2011 and onwards.

Consequently, futures and options on stocks currently eligible on all stock exchanges will be available for trading on BSE. These will be available for trading from August 2011 contracts and onwards. All these instruments will be settled through physical delivery, another initiative launched by BSE earlier this year, the exchange said in a statement here.

The move comes soon after a recent circular from SEBI allowing exchanges to implement Liquidity Enhancement Schemes (LES) for equity derivatives. Along with other innovations like Smart Order Routing (SOR), these initiatives will provide a fillip to BSE's F&O segment.

"As of today, we are introducing 135 additional eligible scrips to our existing list of 84 scrips in BSE Equity Derivatives segment, having expiry in August 2011 and onwards," BSE's MD & CEO Madhu Kannan said in a statement here.

With recent positive developments designed to augment trading in the F&O segment, we are working towards making BSE market-ready for increased participation in our equity derivatives business, Kannan said.

BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives and mutual funds. It also provides a host of other services to capital market participants, including risk management, clearing, settlement, market data services and training.