New Delhi Come Thursday and Indian investors will be able to hedge and gain exposure to the London Stock Exchange, through derivative contracts of UKs FTSE 100 index on National Stock Exchange.
The FTSE 100, informally called the alt39 foo
tsiealt39 is a share index of the stocks of the 100 companies listed on the London Stock Exchange having the highest market value.
For the Indian investors, the rupee- denominated contracts will be traded during normal Indian market hours. In order to promote participation in the contracts, NSE has decided not to levy any transaction fee for the first six months.
Last month, NSE had announced that it has received regulatory approval, to start trading futures and options contracts, based on FTSE 100. In January, 2012, Securities and Exchange Board of India ( Sebi) gave green signal to domestic exchanges to offer trading in derivatives contracts of key indices or 24 stock exchange from across the world.
The NSE has also announced cash incentives to brokers and clients to develop the market for the foreign index in India. NSE has said that all the member brokers of its equity derivatives segment will be able to trade in these derivatives through existing infrastructure.
The FTSE 100 derivative launch, spearheaded by the London Stock Exchange Group, FTSE and NSE, is part of FTSEs global reach and NSEs commitment to further develop the Indian securities market.
