Derivative Current Affairs, GK & News

Derivative

(1) A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (2) A contract which derives its value from the prices, or index or prices, of underlying securities

NSE Clearing Ltd to head SEBI panel to review margins on derivatives

The Securities and Exchange Board of India (SEBI) has constituted a working group, headed by NSE Clearing Ltd., to review the current framework of margins in the futures and options segment. The group will look into the issue and submit its recommendations to the Secondary Market Advisory Committee. This assumes significance as lower cost of ..

Topics: Derivative • Economy • Exchange • Finance • Financial markets • Futures contract • Metropolitan Stock Exchange • National Stock Exchange of India • NIFTY 50 • NSE co-location scam • Securities and Exchange Board of India • Singapore Exchange

SEBI allows custodial services in commodity market

Markets regulator Securities and Exchange Board of India (SEBI) has recently allowed custodial services in the commodity derivatives market. Under the new framework, existing custodians will be permitted to add commodities as an asset class and provide physical delivery of both the securities and commodities. Currently, the regulation on the custodian of securities provides safekeeping ..

Topics: Commodity • Commodity Futures Modernization Act • Custodian bank • Derivative • Economy • Finance • Financial markets • Securities and Exchange Board of India

RBI raises currency derivative trade limit to how much amount for residents and foreign portfolio investors

The Reserve Bank of India (RBI) has raised exposure limit under Exchange Traded Currency Derivatives (ETCD) trading for residents and foreign portfolio investors (FPIs) to $100 million across all currency pairs involving the Indian rupee. The RBI’s decision to raise the limit will help entities engaged in forex transactions to maintain their currency risks in ..

Topics: Currency pair • Derivative • Economy • Finance • Financial law • Financial markets • Foreign exchange market • Foreign exchange risk • Hedge • Indian rupee • Market risk • Rupee

ICEX launched world’s first diamond future

The Indian Commodity Exchange (ICEX) has become the world’s first derivatives exchange to launch diamond futures contract. Initially, the contracts are launched in size of 1 carat with compulsory delivery. This will create an entirely new market for the diamond players where sellers can deliver their certified diamonds to different buyers. The launch will also ..

Topics: Commodity Market • Derivative • Diamond • Diamond Standard • Economy • Exchange • Finance • Financial markets • Futures contract • Futures exchange • Market • Price discovery