Introducing BSE index derivative contracts on Kite

You can now trade in BSE Sensex and Bankex futures and options contracts on Kite.

The weekly contracts of BSE index derivative contracts expire on Friday and have 0 Exchange Transaction Charges for Futures and 0.005% (on premium) for Options.

To add these contracts to the marketwatch, you can search “SENSEX FUT” or “BANKEX FUT” for futures contracts and “SENSEX < Strike Price > CE/PE” or “BANKEX < Strike Price > CE/PE” for option contracts.

To trade in BSE derivatives, you will have to enable the BSE Futures & Options segment on Console. You can check the process for activating a segment here.

Since these contracts are new and have lower liquidity. We’ve placed the following restrictions;

  • Market, SL-M, and MIS orders aren’t allowed. If you wish to, you can place a Limit order like a market order by placing a sell limit order below and a buy limit order above the CMP, which will also act as protection. More: How to use limit orders as market orders?
  • Trading is allowed only in Current Week and Current Month contracts
  • Regulations have a limit on client-wise OI limit of 5% of the total OI. As these contracts are new, the client-wise OI limit is set at 114 lots for Sensex and 1 lot for Bankex. This will increase further as the overall OI increases.
  • Due to illiquidity, options stikes only 2% away from the spot are allowed for trading.

Sensex futures contract specifications

Underlying Sensex
Contract Period 7 Serial Weekly, 3 Serial monthly
Lot Size 10
Trading hours 9:15 AM to 3:30 PM
Expiry day Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day)
Settlement type Cash settled. On the last trading day, the closing value of the underlying index would be the final settlement price of the expiring futures contract.

Sensex options contract specifications

Underlying S&P BSE Sensex
Lot Size 10
Tick Size Rs. 0.05
Contract Period 7 Serial Weekly, 3 monthly, 3 quarterly, and 8 Semi-annually contracts
Premium quotation In Rs. per index value
Trading Hours 09:15 AM to 03.30 PM
Exercise Type European Style
Minimum number of Strikes Shall have a minimum of 41 strikes (20 in-the-money, 1 At-the-money, 20 out-of-the-money)
Strike Price Intervals 100 Index Points
Expiration Day Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day)
Final Settlement Cash Settlement based on the closing price of the underlying index on the day of expiry

About S&P BSE Sensex

The S&P BSE Sensex is India’s most tracked bellwether index. It is designed to measure the performance of the 30 largest, most liquid, and financially sound companies across key sectors of the Indian economy that are listed at BSE Ltd.

The index represents large-cap companies listed at BSE Ltd. and is calculated based on the float adjusted market-cap-weighted methodology. Widely used as a both benchmark and an investable index, the S&P BSE Sensex has a long history of more than 30 years and covers more than ~40% of the total market cap of the BSE Ltd. The index generally attempts to maintain index sector weights that are broadly in line with the overall market.

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BANKEX futures contract specifications

Underlying BANKEX
Contract Period 7 Serial Weekly, 3 Serial monthly
Lot Size 15
Trading hours 9:15 AM to 3:30 PM
Expiry day Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day)
Settlement type Cash settled. On the last trading day, the closing value of the underlying index would be the final settlement price of the expiring futures contract.

BANKEX options contract specifications

Underlying S&P BSE BANKEX
Lot Size 15
Tick Size Rs. 0.05
Contract Period 7 Serial Weekly, 3 monthly
Premium quotation In Rs. per index value
Trading Hours 09:15 AM to 03.30 PM
Exercise Type European Style
Minimum number of Strikes Shall have a minimum of 41 strikes (20 in-the-money, 1 At-the-money, 20 out-of-the-money)
Strike Price Intervals 100 Index Points
Expiration Day Last Friday of each month for monthly contracts (If Friday is a trading holiday the expiry will be on the prior day) For weekly contracts; Friday of each week (If Friday is a trading holiday the expiry will be on the prior day)
Final Settlement Cash Settlement based on the closing price of the underlying index on the day of expiry

About S&P BSE BANKEX

The S&P BSE Bankex index comprises constituents of the S&P BSE 500 that are classified as members of the bank sector as defined by the BSE industry classification system.

The S&P BSE Bankex index is designed to measure the performance of companies in the banking sector. Calculated using a modified market-cap-weighted methodology, the index has more than 10 years of history.

You can check more details on Sensex and Bankex here.


Note: The F&O contracts of the Sensex 50 index are currently not allowed for trading due to low liquidity. These will be available once liquidity improves.


You can check out the charges for trading in the F&O segment here:

Learn more about Futures and Options on Varsity:

19 Likes

need additional watchlists pls. currently its 7, please increase it to 9

or

increase the limit from 50 to 100 for existing watchlists

2 Likes

@viswaram

This is on the to-do list :slightly_smiling_face: :slightly_smiling_face:

1 Like

BSE has explained the margin computation process here. You can check the “Risk Management” section.

I support a watchlist upgrade. Need multiple watchlist for multiple scenarios. Intraday, options , equity, swing , futures, news , longterm, results, banks , indices , etf miscellaneous etc etc etc. As of now , it’s a mess. And costumers doing jugad to keep things tidy. Zerodha you should do something.
Also I requested a notes section in zerodha app. If possible, please add that too. Or else kite will become cumbersome.

1 Like

ICICI bank has a higher weightage than HDFC bank
Kotak has a higher weight than SBI

Bankex is not exactly same as NiftyBank, traders please note.

3 Likes

What is client wise OI limit ? Is it only for zerodha clients or for all broker clients ?

Is oi limit there in bank nifty and nifty as well?

Hy @MEDI_MANOJ

Apart from initial margins brokers are also subject to position limits. Open Interest (OI) is a number that tells you how many futures (or Options) contracts are currently outstanding (open) in the market.

There is a client-wise open interest limit of 5% of the total number of all derivative contracts for the same underlying and a 15% open interest limitation for the trading members (brokers)

Yes this is also applicable for Nifty and bank nifty.

To gain a better understanding of how OI (Open Interest) applies to Nifty and Bank Nifty, I recommend you to refer to this support article.

2 Likes

These limits are not applicable on expiry day right?

i dont understand this, only 1 lot till it gain OI popularity?
it will never increase if only 1 lot allowed.

1 Like

It might if lot of people start taking 1 lot positions

Unable to create price alerts for BSE Exchange
Please check it @nithin @ShubhS9 @MohammedFaisal @Prayag

Hi @dtyxg, checking this. Will get back to you on it.

@ShubhS9 ?

1 Like

The settlement price of the option contract is the weighted average of the last 30 min or the LTP at 3:30? Pls clarify.

Final Settlement Cash settled. On the last trading day, the closing value of the underlying index would be the final settlement price of the expiring futures contract.
This is from the option contract specification that you have posted above.

The final settlement happens according to the final closing price of the underlying. The final closing price is the weighted average price of the last 30 minutes of trading.

Made the changes. Thanks :slight_smile:

Hi @dtyxg, have reported this to the team. Will update here once fixed.

It may take few months for the liquidity to build up. As i see it today - its better not to trade.

I was asking about this

These limits are not applicable on expiry day right?

Thanks

Sensex currently at 62240 and even 62000pe doesn’t have enough liquidity. Only OI of 2560.
I was planning to add some liquidity but then current liquidity isn’t enough for me. :stuck_out_tongue_closed_eyes:

1 Like