NATIONAL STOCK EXCHANGE OF INDIA LIMITED

 

FUTURES & OPTIONS SEGMENT

 

CIRCULAR

 

Circular No. NSE/F&O/092/2005                                                                                  Download No: NSE/FAOP/5856

 

Date: February 22, 2005

 

Dear Members,

 

Sub : Due diligence while entering orders

 

This is in continuation to our circular no : NSE/F&O/006/2004 dated January 20, 2004 cautioning trading members from entering orders at unrealistic prices. It has been observed that trading members are still entering orders at prices which are far away from the normal market price / theoretical price. Trading members are advised to ensure due diligence while entering orders, either placed by them on their own account or for their clients.

 

Trading members are advised that if orders at prices, which are far away from the normal market price / theoretical price are observed, the Exchange may initiate strict disciplinary action against them, which may include de-activation of trading terminals.

 

 

For and on behalf of

National Stock Exchange of India Limited

 

 

 

Latika S Kundu

Manager (F&O Trading)