Review of the eligibility criteria of stocks for derivatives trading especially on account of corporate restructuring

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..... lly on account of corporate restructuring Dear Sir, This is in continuation of the SEBI circulars No.SMDRP/DC/CIR-8/01 dated June 21, 2001, SMDRP/DC/CIR-15/02 dated December 18, 2002 and no. SEBI/DNPD/Cir-28/2004/12/07 dated December 8, 2004 regarding adjustment in derivative contracts at the time of corporate action, it is advised that the exchanges shall apply the eligibility criteria in line .....

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..... et capitalisation of at least ₹ 1000 crores prior to its restructuring; c) the post restructured company would be treated like a new stock and if it is, in the opinion of the exchange, likely to be at least one-third the size of the pre restructuring company in terms of revenues, or assets, or (where appropriate) analyst valuations; and d) in the opinion of the exchange, the scheme of rest .....

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..... e tests are not met, the exchange shall not permit further derivative contracts on this stock and future month series shall not be introduced. The circular shall be implemented with immediate effect. This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of the Securities Contract (Regulation) .....

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