BSE launches mini derivatives contracts

Bombay Stock Exchange will launch SENSEX mini derivatives Contracts from January 1, 2008 in a market lot of FIVE. This is a first in India. The small size of the contract would be attractive for retail investors as there would be comparatively lower capital outlay, lower trading costs, more precise hedging and flexible trading. It is a step to encourage and enable small investors to mitigate risk and enable easy access to India's most popular index, SENSEX, through futures & options.

The Security Symbol for SENSEX mini Contracts will be MSX. The contract is available for one, two & three months along with weekly options.

The SEBI Board has approved introduction of 7 new derivative products for the Indian market based on the recommendations made by the SEBI Committee on Derivatives headed by Prof. M. Rammohan Rao. As stated by SEBI, the introduction of these products is a step intended to progressively encourage markets to move onshore.