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Sebi sets criteria for options trading

Market regulator Securities and Exchange Board of India says an estimated 30 to 35 shares will initially qualify for options trading.

The Bombay Stock Exchange offers index futures and index options, while the National Stock Exchange has index futures. Both the exchanges are expected to launch options trading in stocks later this month.

The company's founders should not own more than 70 percent of the holding for its shares to be eligible for options trading, Sebi said late on Friday.

The stock's market capitalisation should figure among the top 200 and average a free float of at least Rs 7.5 billion.

Free float market capitalisation is the market value of shares not held by the founders.

Eligible shares should also figure among the top 200 stocks in terms of the average daily volume during the last six months.

Shares that qualify should have an average daily volume of not less than Rs 50 million in the underlying cash market, it added.

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