National Stock Exchange of India Limited

One stop shop for all asset classes
Equity | Debt | Currency | Commodity

Appointment Tax Consultant
Deciding on trading andclearing products

Permanent Account Number(PAN) registration

Assistance on tax related
obligations

Appointment Designated Depository Participants (DDPs)- CustodianForm-A (duly filled &signed)

Due diligence withDDP

Submission ofdeclarations &undertakings

Agreement with DDP engaged
by it to act as a Custodian
before making anyinvestments

KYC related activity

Opening of Bank account &Demat accountFPI registration underone of the 2 categories
Creation of Unique Client
Code (UCC) and Custodian
participation (CP) CodeAppointment of Trading & Clearing Broker
Compliance related to
KYC registration anddocumentation

FPI Category I

Opening of broking
account

CP code setup• Government and Government related investors such as central banks, sovereign wealth funds, international or multilateralorganizations or agencies• Pension funds and university funds• Appropriately regulated entities such as insurance or reinsurance entities, banks, asset management companies, investment
managers, investment advisors, portfolio managers, broker dealers and swap dealers• Entities from the Financial Action Task Force (FATF) member countries which are- appropriately regulated funds/
unregulated funds whose investment manager is appropriately regulated and registered as a Category I foreign portfolio
investor, provided fulfilment of few clauses.
• An entity (A) whose investment manager is from the FATF member country and such an investment manager is registered asa Category I foreign portfolio investor; or (B) which is at least seventy-five per cent owned, directly or indirectly by anotherentity, eligible under sub-clause 2,3,4 of above of this regulation and such an eligible entity is from a FATF member country• Appropriately regulated funds not eligible as
Category-I foreign portfolio investor

FPI Category II

UCC setup• Endowments and foundations• Charitable organisations• Corporate bodies• Family offices• Individuals• Appropriately regulated entities investing on behalf of their client,
as per conditions specified by the Board from time to time
• Unregulated funds in the form of limited partnership and trusts

Access to India for US Clients•First India stock exchange to receive Part 30 exemption Order (”the Order”), granted by the Commodity Future Trading
Commission (”CFTC”) under CFTC Regulation 30.10, on May 17, 2018•

This permits NSE members who are not registered with the CFTC as future commission merchants (”FCMs”) to carryaccounts as “exempt FCMs” to trade in future contracts listed on NSE for the U.S customer upon complaince with certain
requirements and conditions as set forth in the Order•

Currently CFTC No-Action letter has been issued for NIFTY Index contracts•

Access to NIFTY Futures, Narrow Based Derivatives (SSF and Index Futures) in the likes of NIFTY Bank, NIFTY ITetc. for US customers

National Stock Exchange of India Limitedw w w. n se ind ia .com

Position Limits*Products

FPI Category I

FPI Category II (other than FPIs in FPI Category II ( individuals,sub-category individuals, family family offices, and corporates)
offices, corporates)

EquityThe purchase of equity shares of each company by a single FPI or an investor group# shall be below
10% of the total issued capital of the company

Equity Derivatives

Higher of INR 5 bn or 15% of thetotal OI in the market- on Index
for Futures & Options separately.
In addition, hedge positions
permitted

Higher of INR 3 bn or 10% of thetotal OI in the market- on Index
for Futures & Options separately

Higher of INR 1 bn or 5% ofthe total OI in the market- onIndex for Futures & Options
separately

Stock Derivatives

20% of MWPL

10% of MWPL

5% of MWPL

Gross open position across all contracts - higher of 15% of the OI or Gross open position across all
contracts higher of 6% of OI or
USD 100 mn / EUR 50 mn / GBP 50mn / JPY 2000 mn
USD 20 mn/ EUR 10 mn /GBP 10 mn / JPY 400 mn• Long as well as short position upto USD 100 mn for FCY-INR pairs (USDINR, EURINR, GBPINR &JPYINR) across all Exchanges without having to establish existence of underlying exposure.

Currency Derivatives• Long positions permitted in excess of above specified limits based on underlying exposure in Indiandebt/ equity securities or units of equity / debt mutual funds• FPIs are permitted to participate in Cross Currency Derivatives (EURUSD, GBPUSD & USDJPY) within
permissible position limits without any underlying exposure.
Position limits for 8-11 year bucket- 10% of Open Interest orINR 12 bn whichever is higher
Position limits each for 4-8 and 11-15 years bucket- 10% ofOpen Interest or INR 6 bn whichever is higher

Position limits for 8-11 year
bucket- 3% of Open Interestor INR 4 bn whichever ishigher
Position limits each for 4-8
and 11-15 years bucket- 3%of Open Interest or INR 2 bnwhichever is higher

Interest Rate Derivatives• Separate limit of INR 50 bn for FPIs for taking long position in IRF• NO FPI can acquire net long position in excess of INR 18 bn at any point of time in IRF• The total gross short (sold) position of each FPI in IRF shall not exceed its long position in thegovernment securities and in IRF at any point in time
OI = Open Interest; PL = Position Limit; MWPL = Market-wide Position Limit; Gsec = Government Securities; Corp Bonds – Corporate Bonds* Latest FPI regulation @ https://www.sebi.gov.in/legal/regulations/sep-2019/securities-and-exchange-board-of-india-foreign-portfolio-investors-regulations-2019_44436.html.
* Latest Operating Guidelines @ https://www.sebi.gov.in/legal/circulars/nov-2019/operational-guidelines-for-fpis-and-ddps-under-sebi-foreign-portfolio-investors-regulations-2019-and-for-eligible-foreign-investors_44870.html

Collaterals Permitted
Cash | Government Securities | Corp Bonds | Foreign AAA Sovereign securities

Margin & Settlement Obligation
Equity· FPIs margined on a T+1 basis· FPIs who are Corporate bodies, Individuals or Family offices are margined on an upfront basis· FPIs are under obligation to settle all trades by delivery

F&O, CDS, IRF & SLBM

· All categories of FPIs are margined on an upfront basis

National Stock Exchange of India Limitedw w w. n seind ia .co m

NSE’s Backbone
NSE Clearing Ltd - Robust Risk Management benefitting Investors•Consistent settlement cycles since inception•On-line, real-time, upfront, client level margins•Real-time monitoring of exposure•Margin alerts to members & automatic stop of trading facility on breaching limits•

Availability of cross margin facility between Equity, Equity Derivatives & ETF’s•

Acceptance of collaterals like Cash, Government Securities & Corporate Bonds from FPI’s / FII’s•

Test of robustness - Extreme market movements handled without any defaults•

Rated ‘AAA’ (highest corporate credit rating) for 8 consecutive years by CRISIL•NSE Clearing has been granted recognation by ESMA as a “third party CCP”

•Recognized as a Qualified Central Counterparty (QCCP) and systemically important market infrastructure institution insecurities market regulated by SEBI•Separate segment specific Settlement Guarantee Fund•

Well defined default waterfall mechanism•

Committed to the adoption and implementation of the principles “Principles for Financial Market Infrastructure” (PFMIs)
issued by the CPMI and IOSCO•Interoperability framework between clearing corporations for Equity, Futures & Options and Currency Derivatives
Guaranteed Settlement

Minimal counterparty risk

Greater market confidence

Novation

Landmark Achievement in Indian financial market

Multilateral Netting

Efficient use of capital

Reduction in settlement instructions
and transaction cost

Guarantee Fund

Separate SGF for each segment

Stringent stress tests

Technology••••••Nationwide POP topology & innumerable algorithms pan-India coming in through concentrators
Technology developed in-house with associate companies and partners to design and build the platform
Reliable and inexpensive multi connectivity with load balancing because of our scalability
Processes a billion plus messages per day
Data centers and co-location services adhering to ISO 20000 for service standard
3 DC architecture with far DR site providing opposite-coast redundancy

Co-location Facility•••••

Exchange hosting servers to provide low latency
connectivity
Improves market efficiency through liquidity
generation & performance enhancements
Inter-rack connectivity on request permitted
TAPE Backup restore facility (optional)
The Exchange also has the facility of managed
co-location service through empanelled vendors

NSE Primary Site
Automatic Ordertransmission server(Internal Algorithm)
Automatic Order
Transmission Market Data &Tick by Tick Data Feed

Trading Partipants Site

Management
Managing
Strategies

Trading Member

DMA

Trading Infrastructure
Trading System
Market Data System

Multi-layered Service System•••••••

Pivotal role in market advocacy
Specialised Team to serve our Institutional Members and Clients
A nation wide CRM Team to serve our members in general
Consistent joint efforts with members to reach, engage and develop clients
Nation wide Investor Awareness Programs for retail investors in large numbers
Training sessions for students to introduce the concept of saving & investing at an early age
Certification courses & tie ups with educational institutions to create a professional workforce for the industry

National Stock Exchange of India Limitedw w w. n seind ia .co mEquity: NSE offer trading in 1900 + securities with the total market capitalisation of approx. USD 3 Tn ason March 2021.
Exchange Traded Fund (ETF): Currently around 105 ETFs are traded on NSE with multiple underlying
like equity indices, gold and money market instruments.
Several Modes of Trading for Jan’21 - Sep’21

Equity1%

124,000

10
8

3,000

62,00041,00020-

2016-20172017-20182018-20192019-2020

2020 - 21

Stock Futures Stock Options

Parameters

188 securities

Trading Cycle

3 consecutive monthly
contracts

11%

12%
34%

1%

2021 - 22
Non Algo

Parameters

19%

22%

Avg. Daily Traded Qty (Mn)

Avg. Daily Turnover (USD Bn)

EquityNIFTY Index
Futures

NIFTY Index
Options

Algo

DMA

Colocation

IBTMobileSOR

BANKNIFTYBANKNIFTYFINNIFTY FINIFTY Index
Index Futures Index Options Index Futures
Options

NIFTY 50 Index

BANKNIFTY Index

Nifty Financial Services Index

3 consecutive
7 weekly
3 consecutive
7 weekly
3 consecutive
7 weeklymonthly
contracts,monthlycontracts,monthlycontracts,contracts
3 consecutive
contracts
3 consecutive
contracts
3 consecutive
monthlymonthlymonthly
contracts
contracts
contracts, 3
Qtrly (Mar,Jun, Sep &Dec) and 8semi-annualcontracts
up to 5 years

Premium considered for options volume

0.6

0.5

0.5

0.4

0.4

0.3

0.3

0.2

0.2

0.1

0.1

0.00.02016-172017-18

2018-192019-20

2020 - 21

60

2.5

Avg. Daily Volume USD Bn

0.6

50

2.0

40

1.5

30
1.0

20

0.5

100.0

2021 - 22

2016-172017-18

2018-192019-20

2020 - 21

2021 - 22-Avg. Daily No. of Contracts Mn

Index Op�ons
Avg. Daily No. of Contracts Mn

Avg. Daily Volume USD Bn

Index Futures

Several Modes of Tradingfor Jan’21 - Sep’21

Equity Deriva�ves0%
10%

11%

1.0

100.8

80.6

60.4

40.22-0

2016-172017-18

2018-192019-20

2020 - 21

2021 - 22

3.00.60

2.5

0.50

2.0

0.40
1.5

0.30

1.0

0.20

0.5

0.10
-0.0

2016-172017-18

National Stock Exchange of India Limited

2018-192019-20

2020 - 21

Avg. Daily No. of Contracts Mn

1245%

0.70

Avg. Daily Volume USD Bn

1.2

Avg. Daily No. of Contracts Mn

Avg. Daily Volume USD Bn

144%
12%

Stock Op�ons

Stock Futures

18%Non Algo

Algo

DMA

ColocationIBTMobileSOR

2021 - 22w w w. n se ind ia .com

•RBI has permitted FII/FPIs to access Exchange traded Currency Derivatives w.e.f. June 27, 2014

•Futures & Options on cross currency pairs (EUR-USD, GBP - USD & USD - JPY) are also available for trading
Currency Futures
EURINR

Currency Options

Underlying

USDINR

GBPINRJPYINRUSDINR

GBPINRJPYINR

Unit of trading

USD 1000 EUR 1000 GBP 1000

YEN
100000

USD 1000 EUR 1000 GBP 1000

YEN
100000

11 weekly,
3 monthly& 3 quarterly contracts

11 weekly

Trading Cycle

EURINR

12 monthlyFor weekly options- Friday•
•

3.5

3.0

3.0

2.5

2.5

2.0

2.0

1.5

1.5

1.0

1.0

0.5

0.5

0.00.02018-20192019-2020

2020-2021

2021-22

Avg. Daily Notional Volume USD Bn

3.5

2017-2018

Last Thursday of the month

Currency Op�ons
Avg. Daily No. of Contracts Mn

Avg. Daily Notional Volume USD Bn

Currency Futures

2016-2017

3 monthly &3 quarterly contracts

Two working days prior to the last business day of the expiry month at 12:30 pm

Expiry Day••

Interest Rate Derivatives
Futures on GOI securities withmaturities from 4 to 15 years
and Options on GOI securities
with maturity of 10 years

6.0

6.0

5.0

5.0

4.0

4.0

3.0

3.0

2.0

2.0

1.0

1.0
0.0

0.0
2016-20172017-20182018-20192019-2020

2020-2021

Avg. Daily No. of Contracts Mn

Parameter

2021-22

Market Hours: Monday to Friday 10:00 am to 11:30 pm/11:55 pm* (*based on US daylight saving time period)
SEBI has permitted Eligible Foreign Entities (EFEs) having actual exposure to Indian commodity markets, toparticipate in Indian domestic commodity derivatives markets, to hedge their positionsDelivery based commodity futures contracts are available for trading on NSE’s commodity derivatives segment
Available products - Gold Futures, Gold Mini Futures & Options, Gold 1G Futures, Silver Futures & Options,
Brent Crude Oil Futures, Copper Futures and Options and Crude Degummed Soybean Oil Futures.

About NSE
National Stock Exchange of India (NSE), the largest stock exchange in India in terms of volumes since 1995, operates a nation-wide, electronic market,
connecting investors in search of growth to corporate issuers in search of efficient capital, providing robust technology platform and exchange tradedproducts. NSE offers trading in equities, futures & options in equities, currency, commodities and interest rates, volatility, fixed-income, sovereign gold
bonds and a platform for distribution of mutual funds and mechanism for securities lending and borrowing. Backed by an indigenous software andnetwork of connectivity through VSATs, leased lines, internet and mobiles, NSE provides investor’s across the globe access to liquidity and Indian
markets. NSE has made its global presence felt with it’s flagship index, the NIFTY 50.
NSE is committed to operate a market ecosystem which is transparent and efficient; and at the same time offers high levels of safety, integrity andcorporate governance, providing ever growing trading & investment opportunities for investors.

Disclaimer
The material provided here is for general information purposes only. While care has been taken to ensure accuracy, the information furnished to reader
with no warranty as to accuracy or completeness of its contents and on condition that any changes, omissions or errors shall not be made the basis forany claim, demand or cause for action. The NSE Derivative Products/ Services provided by NSE are subject to the US CFTC and SEC compliances.
Prospective investors must rely on their own examinations of the NSE products/ services, including the merits and risks involved. Nothing statedherein shall bind NSE or its subsidiaries in any manner whatsoever. Investor must read information memorandum available on NSE website before
investing in single security futures on NSE. The above material is dated October 2021.

National Stock Exchange of India Ltd.
Exchange Plaza, Plot no-C1, G block, Bandra-Kurla Complex Bandra (E), Mumbai - 400 051Tel No: + 91 22 2659 8184 / 8431 | Email: figeq@nse.co.in | Website: www.nseindia.com

National Stock Exchange of India Limited

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