From 29th August 2011 onwards NSE has introduced the Standard & Poor (S&P 500) and Dow Jones Industrial Average (DJIA) derivatives contracts in the Nifty trading platform. The contracts will be traded during the normal trading hours. As it is Indian Rupee contracts so all Indian Residents can take positions in these contracts. Both these indices are traded on CME (Chicago Mercantile Exchange)
1) The investments in foreign assets is subject to limits as per RBI of 2,00,000 USD
2) There is no currency holding cost and conversion cost
3) The contracts are in INR and there is currency risk
4) Positions in US and India
5) Now, People will be able to de-risk their portfolio by taking international contracts.
6) Till 29th February 2012 the trading charges is being waived off by NSE.
These contracts will be traded during the nifty trading hours and the contracts will be of rupee denominated.
The new contracts will be traded with the existing derivatives in the equity segment. Like other equity derivatives settlement is guaranteed for these contracts. People do not require additional documents or registration from its clients. There are 3 serial monthly contracts and 3 quarterly expiry contracts in the March, June, Sept and Dec cycle.
The National Stock Exchange will feature live broadcast of the future contracts traded on the CME (Chicago Mercantile Exchange) on its trading terminals. The DJIA and the S&P 500 are listed on CME and trading takes place for 23 hours in United States.
S&P 500 is introduced with both futures & Options contracts where as DJIA have only futures contract only.Google+