The derivatives contract on global indices provides various advantages as outlined below:
Opportunities
Derivatives contracts on the index will
enable Indian investors to participate in international financial
markets and bringing diversification in their investment portfolios
Simplicity
The contracts shall be traded during
Indian time and under the domestic regulatory set up
No currency risk
The contracts are rupee
denominated. Hence there shall be no currency risk associated with
trading them
Ease of Access
The instruments would be introduced
in the existing equity derivatives segment. The existing trading,
clearing and risk management infrastructure could be used without
any additional cost
Security
Settlement Guarantee
currently available in equity derivatives segment shall be
automatically extended to these products as well.
Further existing hardware, software and network can be
used to trade in derivatives on Global Indices. Investors may
use their existing relationship with their trading members to trade
these products.