Description

NSE Clearing notifies members that existing clearing, settlement, and risk management procedures for equity derivatives will apply to futures and options contracts on BSE Focused IT Index.

Summary

NSE Clearing Limited has notified all members that the existing clearing, settlement, and risk management procedures applicable to equity derivatives segment futures and options contracts will apply mutatis mutandis to futures and options contracts on the BSE Focused IT Index. This circular follows earlier notifications regarding the introduction of these contracts.

Key Points

  • All existing clearing and settlement procedures for equity derivatives F&O contracts extend to BSE Focused IT Index contracts
  • Existing risk management measures including initial margins and minimum margins apply to these contracts
  • NSE Clearing Corporation retains the right to close out positions in these contracts
  • This circular follows circular no. 050/2026 (NSE/CMPT/73997) dated April 30, 2026 and BSE circular no. 20260415-34 dated April 15, 2024 on introduction of F&O contracts on BSE Focused IT Index

Regulatory Changes

No new regulatory changes are introduced. The existing regulatory framework for equity derivatives — including initial margins, minimum margins, and position close-out rights — is extended to cover BSE Focused IT Index futures and options contracts.

Compliance Requirements

  • Members must apply the existing equity derivatives clearing and settlement procedures to BSE Focused IT Index F&O contracts
  • Members must adhere to applicable margin requirements (initial margins, minimum margins) for these contracts
  • Members are advised to take note of the above provisions

Important Dates

  • Circular date: May 11, 2026
  • Reference circular (NSE): 050/2026 dated April 30, 2026
  • Reference circular (BSE): 20260415-34 dated April 15, 2024

Impact Assessment

This circular has moderate operational impact on members who trade or intend to trade futures and options contracts on the BSE Focused IT Index. Since the framework being applied is identical to the existing equity derivatives framework, no new systems or processes need to be implemented. Members already familiar with equity derivatives clearing and risk management procedures will find compliance straightforward. The circular primarily serves as formal notification to ensure members are aware that standard F&O risk controls apply to this index product.

Impact Justification

Routine operational circular extending existing clearing and risk management framework to a new index derivatives product; no new rules introduced, moderate impact on members trading BSE Focused IT Index F&O contracts.