Futures on 31 individual stocks by mid-November

New Delhi, Nov 5: Securities and Exchange Board of India (SEBI) Chairman DR Mehta said on Monday that futures on 31 individual stocks would be introduced latest by middle of this month.

“The futures on individual stocks would be introduced latest by Diwali. Futures trading would be introduced in 31 active scrips,” Mr Mehta told reporters after meeting Finance Minister Yashwant Sinha here today.

He said Bombay Stock Exchange (BSE) has already informed the regulator that it was ready with the software and trading systems and National Stock Exchange (NSE) was also likely to be ready by this time.

The capital market watchdog has so far allowed derivative trading in index futures and options, in a bid to provide hedging instruments to the investors.

Asked about corporatisation of bourses, Mr Mehta said it would be taken up at the next Sebi board meeting.

Sebi is consulting with stock exchanges about the modalities of corporatisation or demutualisation of bourses, which involves separating ownership and trading rights of stock exchange board members.

Finance Ministry had earlier sought legal clarification from the law ministry on the division of surpluses from the exchanges.

The government decided to go full-steam with capital market reforms and corporatise bourses after the stock scam of March.

Corporatisation of bourses are part of measures to check market manipulations and impart transparency.

— PTI