NSE will introduce rollover in its Securities Lending and Borrowing Scheme (SLBS) effective Tuesday. At present, securities available for trading in the F&O segment of NSE are permitted in SLBS.
Rollover would be allowed for a three-month period — original contract plus two rollover contracts. For instance, the June contract for rollover from June to July and June to August would be introduced only after the expiry of the May series. Twenty four new contracts for rollover are being introduced.
The last trading day of rollover contracts will be the fourth working day prior to expiry of the respective near-month series, excluding settlement holidays. For example, the last trading day of rollover contracts June-July and June-August will be the fourth working day, excluding settlement holidays, before expiry of the June series.
In case of corporate actions (other than stock split and dividend) in a security resulting in foreclosure, no rollover will be allowed. In case of corporate action (other than stock split and dividend) all existing positions in SLBS will be foreclosed two days prior to the ex date.
During the shut period (for stock split and dividend) no transactions, including rollover, would be allowed in the security.
SEBI had allowed rollover of SLBS since November 2012.
The SLBS mechanism logged in a turnover of ₹321.99 crore in April with over 85.2 lakh shares of 53 scrips being lent/borrowed over 2,446 trades.
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