Leading bourses BSE and NSE will introduce futures and options (F&O) contracts in five organizations including ICICI Prudential Life Insurance Company Ltd and Manappuram Finance Ltd from Friday.
The other firms are Chennai Petroleum Corporation, SREI Infrastructure Finance and Repco Home Finance.
In separate circulars, the exchanges said that futures and options contracts on these “five extra securities would be available for exchanging with effect from June 30, 2017”.
At present, there are more than 200 securities available in the F&O segment for trade. Recently, a few stocks have been included in the segment.
Prior in March, the exchanges had introduced F&O contracts in 15 organizations including InterGlobe Aviation, Indian Bank, PVR, Reliance Defense and Engineering and Ujjivan Financial Services.
In July 2015, markets regulator Sebi had made a steep hike in the minimum investment size for any equity derivative product to Rs. 5 lakh from Rs. 2 lakh. Besides, the minimum lot size of an equity derivative contract had been increased to Rs. 5 lakh.
A derivative is a security derived from a debt instrument, share, loan, whether secured or unsecured or some other type of security. It additionally derives its value from the costs, or list of costs, of underlying securities.