Contract Specifications for Stock Options

Trading in stock options commenced on the NSE from July 2001. These contracts are American
style and are settled in cash. The expiration cycle for stock options is the same as for index futures
and index options. A new contract is introduced on the trading day following the expiry of the near
month contract. NSE provides a minimum of seven strike prices for every option types (i.e. call and
put) during the trading month. There are at least three in-the money contracts and one at-the-
money contracts, three out-of-the-money contracts and one at-the -money contract available for
trading.

Contract specification Stock options

Underlying index Individual securities available for trading in cash

market

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N OPTSTK

Style of option American

Contract size As specified by the exchange(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Contract Specifications for Stock Futures

Trading in stock futures commenced on the NSE from November 2001.These contracts are cash
settled on a T+1 basis.
The expiration cycle for stock futures is the same as for index. Futures, index options and stock
options.
A new contract is introduced on the trading day following the expiry of the near month contract.

Contract specification Stock futures

Underlying index Individual securities

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N FUTSTK

Contract size As specified by the exchange(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Contract Specifications for Index Options (Nifty Options)

On NSE’s index options market, contracts at different strikes, having one-month, two-month and
three-month expiry cycles are available for trading.

There are typically one-month, two-month and three-month options, each with minimum seven
different strikes available for trading. Hence at a given point in time there are minimum 3*7*2 or
42 options products. Option contracts are specified as follows: DATE-EXPIRYMONTH-YEAR-
CALL/PUT-AMERICAN/ EUROPEAN-STRIKE. For example the European style call option contract on
the Nifty index with a strike price of2040 expiring on the 30th june2005 is specified as ‘30Jun 2005
2040CE’.

Contract specification S&P CNX Nifty futures Options

Underlying index S&P CNX Nifty

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N OPTIDX NIFTY

Contract size Permitted lot size shall be 100(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
 trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Settlement price Daily settlement price will be the closing price of

the futures contracts for the trading day and the
final settlement price shall be the closing value of

the underlying index on the last trading day.

Contract Specifications for Stock Options

Trading in stock options commenced on the NSE from July 2001. These contracts are American
style and are settled in cash. The expiration cycle for stock options is the same as for index futures
and index options. A new contract is introduced on the trading day following the expiry of the near
month contract. NSE provides a minimum of seven strike prices for every option types (i.e. call and
put) during the trading month. There are at least three in-the money contracts and one at-the-
money contracts, three out-of-the-money contracts and one at-the -money contract available for
trading.

Contract specification Stock options

Underlying index Individual securities available for trading in cash

market

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N OPTSTK

Style of option American

Contract size As specified by the exchange(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.
Futures and Options Market Instruments

The Futures and Options (F&O) segment of NSE provides trading facilities for the following
derivative instruments;

• Index based Futures(NIFTY FUTURES)

• Index based Options(NIFTY OPTIONS)
• Stock Futures
• Stock Options

Contract Specifications For Index Futures (Nifty Futures)

NSE trades Nifty future, CNX IT and BANK Nifty futures contracts having one-month, two-month and
three-month expiry cycles.

All contracts expire on the last Thursday of every month. Thus a January expiration contract would
expire on the last Thursday of January and a February expiry contract would cease trading on the
last Thursday of February. On the Friday following the last Thursday, a new contract having a
three-month expiry would be introduced for trading.

Depending on the time period for which you want to take an exposure in index futures contracts,
you can place buy and sell orders in the respective contracts. The instrument type refers to
“Futures contract on Index” and contract symbol-NIFTYFUT denotes a “Futures contract on Nifty
index” and the Expiry date represents the last date on which the contract will be available for
trading.

Contract specification S&P CNX Nifty futures

Underlying index S&P CNX Nifty

Exchange of trading National Stock Exchange of India Limited

Security Descriptor 1.N FUTIDX NIFTY

2.N FUTIDX MNIFTY

Contract size 1.NIFTYFUT-Permitted lot size shall be 50

(minimum value Rs.2lakh)
2.MNIFTYFUT-Permitted lot size shall be
20(minimum value Rs.80thousand)
Expiry day The last Thursday of the expiry month or the
previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Settlement price Daily settlement price will be the closing price of

the futures contracts for the trading day and the
final settlement price shall be the closing value of
the underlying index on the last trading day.

INDEX CNX IT FUTURES

Contract specification S&P CNX Nifty futures

Underlying index CNX IT

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N FUTIDX CNXIT

Contract size Permitted lot size shall be 100(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Settlement price Daily settlement price will be the closing price of

the futures contracts for the trading day and the
final settlement price shall be the closing value of
the underlying index on the last trading day.

BANK NIFTY FUTURES

Contract specification S&P CNX Nifty futures

Underlying index CNX BANK

Exchange of trading National Stock Exchange of India Limited

Security Descriptor N FUTIDX BANKNIFTY

Contract size Permitted lot size shall be 100(minimum value

Rs2lakh)

Expiry day The last Thursday of the expiry month or the

previous trading day if the last Thursday is a
trading holiday.

Settlement basis Mark to Market and final settlement will be cash

settled on T+1 basis.

Settlement price Daily settlement price will be the closing price of

the futures contracts for the trading day and the
final settlement price shall be the closing value of

the underlying index on the last trading day.