The Bombay Stock Exchange (BSE), on May 8, 2026, introduced the clearing, settlement and risk management norms applicable to Futures and Options contracts on the BSE Focused IT Index pursuant to the launch announced by BSE in April 2026. The framework will govern settlement cycles, margin requirements, and risk parameters applicable to the new index derivatives contracts.
Under the settlement mechanism, daily mark-to-market settlements, premium settlements, and final settlements for futures and options contracts will be conducted on a T+1 basis in accordance with ICCL timelines. The final settlement price will be based on the closing value of the underlying BSE Focused IT Index on the last trading day. ICCL has also clarified that daily settlement prices for contracts will be determined using the last half-hour volume weighted average price methodology or such other mechanism as prescribed from time to time.
For risk management purposes, ICCL will apply the SPAN-based margining framework with a minimum initial margin requirement of 9.30% for BSE Focused IT Index contracts. The circular further specifies parameters relating to price scan range, volatility scan range, and calendar spread margins, including a calendar spread margin of 1.75% for index derivatives. All other existing rules, procedures, and operational norms applicable to the Equity Derivatives Segment will continue to apply to these contracts.
[Notice No. 20260508-39]
