What are the requirements for a NRI to invest in derivatives?
NRIs are permitted in invest in exchange traded derivative contracts subject to the margin and other requirements which are in place for other investors. In addition, a NRI is subject to the following position limits:Index OptionsDisclosure requirement for any person or persons acting in concert holding 15% or more of the open interest of all derivative contracts on a particular underlying index.Index FuturesDisclosure requirement for any person or persons acting in concert holding 15% or more of the open interest of all derivative contracts on a particular underlying index.Stock Options1% of free float market capitalization or 5% of open interest on a particular underlying whichever is higher.Single stock Futures1% of free float market capitalization or 5% of open interest on a particular underlying whichever is higher.Interest rate futuresRs. 100 Cr or 15% of total open interest in the market in exchange traded interest rate derivative contracts, whichever is higher.
