NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES AND OPTIONS SEGMENT

CIRCULAR

Circular No.: NSE/F&O/112/2008

Download No. NSE/FAOP/11448

Date: October 7, 2008

Dear Members,

Sub: Eligibility criteria for introduction of derivatives on shares

The Exchange is in receipt of SEBI circular no. SEBI/DNPD/Cir-40/2008 dated October 6, 2008, regarding Eligibility criteria for introduction of derivatives on shares. A copy of SEBI circular is enclosed as Annexure I.

This circular shall be implemented with immediate effect

Members are requested to take note of the above.

For any clarifications, members are advised to contact the following officials

Mr Janardhan Gujaran and Mr Sachin Dhar at 022-26598151 and 022-26598152.

For National Stock Exchange of India Ltd.

Suprabhat Lala

Asst. Vice President

Annexure 1

General Manager

Derivatives and New Products Department

SEBI/DNPD/Cir-40/2008

October 6, 2008

To

The Managing Director / Executive Director

of Derivative Segment of NSE and BSE

and their Clearing Houses / Corporations.

Dear Sir,

Sub: Eligibility criteria for introduction of derivatives on shares

This has reference to the eligibility criteria prescribed in the Circular No. SMDRP/DC/CIR-13/02 dated December 18, 2002 and Circular No. SEBI/DNPD/Cir-26/2004/07/16 dated July 16, 2004 for introduction of derivatives on shares.

The Circular dated December 18, 2002 enabled the Exchanges to introduce derivatives on shares at the time of its listing in the cash market, if the net public offer was Rs. 500 crore or more. The Circular dated July 16, 2004 enabled Exchanges to consider introduction of derivatives on shares post their listing.

With a view to rationalize the eligibility criteria for introduction of derivatives, it has now been decided that the Exchanges may introduce derivatives on shares fulfilling the criteria prescribed in the Circular dated July 16, 2004 irrespective of their date of listing and / or size of issue.

This circular is being issued in exercise of powers conferred by sub-section (1) of section 11 of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

This circular is available on SEBI website at www.sebi.gov.in, under the category “Derivatives – Circulars”.

Yours faithfully,

SUJIT PRASAD