Where to buy/sell Equity Linked Notes in India?

Bonds
5

But, based on my understanding of ELNs and Options,
The approach is something like this…

Say one has 100 INR today

  • From that, one uses INR 5

    • one purchases a call option for NIFTY50@19000 that matures in a year.
    • if NIFTY > 19000 in one year
      • one execrcises the option and obtains the NIFTY-linked profit (difference between 19000 and future LTP of NIFTY.
    • if NIFTY <= 19000 in one year
      • one lets the option expire and gains/loses nothing more.

  • From that, one uses INR 95

    • one purchases a government bond (eg. a TBILL) maturing in 1 year.
    • these will provide 100 on maturity.
      • this is the basis for your “principal protection”
        (upon maturity, you receive your 100 INR back no matter what NIFTY does)

NOTE: Above example uses single-digit INR for simplicity.
The minimal amount required to setup a properly balanced sceanrio above,
will be determined by the lot sizes of the NIFTY call-option (50 units).

A similar approach / financial instrument was discussed in this thread.

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