Global Indices

What are the eligibility criteria stipulated by SEBI for introduction of derivatives on Global Indices?   HOME

As per SEBI guidelines foreign stock indices meeting the criteria mentioned below are eligible for introduction of derivatives by stock exchanges. The stock exchanges shall submit the risk management framework along with their application to SEBI.  On approval, stock exchanges shall introduced derivatives on foreign stock indices.

Eligibility Criteria for derivatives on a foreign stock index:
Sr. No. Conditions
1Derivatives on that Index is available on any of the stock exchanges listed at Annexure A
2In terms of trading volumes (number of contracts), derivatives on that Index figure among the top 15 Index derivatives globally.


That Index has a market capitalization of at least USD 100 billion.
3 That index is “broad based”. An Index is broad based if :
  • The Index consists of a minimum of 10 constituent stocks and
  • No single constituent stock has more than 25% of the weight, computed in terms of free float market capitalization, in the Index.