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BSE to delay start of stock options trading

The Bombay Stock Exchange will not commence options trading on individual stocks from Monday as previously announced because more time is needed to test software, a senior exchange official told Reuters on Saturday.

"We are still in the process of testing the software and the launch of options will be delayed by a few days," Sanjiv Mehta, the chief executive officer of the BSE's derivative division said.

He refused to give a specific date for the delayed launch but indicated trading may yet begin sometime next week.

However, stock options trading will begin from Monday as scheduled on the National Stock Exchange, the country's largest bourse.

In mid-May the Securities and Exchange Board of India announced it would ban all deferral products -- such as carryforward trading -- from July 2, and introduce globally accepted options trading on individual stocks from that date.

The market regulator also directed bourses to commence mandatory rolling settlement in more than 400 of the most actively traded stocks. The new system will replace weekly settlement.

Under rolling settlement, accounts are to close at the end of each day and trades settled five business days later.

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