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Futures

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“Futures” is essentially a

Standard Contract

Entered into between Two Parties – A Buyer and a Seller

On a Recognised Stock Exchange

Through an Authorised Stock Broker

For the Price, Quantity & Quality, decided as on Current Date

But, Settlement to take place on or before a defined Future Date

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Futures

Futures expires on the Last Thursday of the Month

If the last Thursday is a holiday, it will expire on the previous working day

On Expiry, all Contracts will be compulsory Cash Settled

Settlement Price = (Contracted Price – Closing Price) X Number of Units

Number of Units is referred to as, “Lot Size”, which will vary from Scrip to

Scrip and Index to Index

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Futures

At any point of time, there will be Three Futures Contracts for an underlying

For the Month

Near Month

Far Month

The Day, next to the Date of expiry of For the Month Contract, a new

Contract will be introduced and thus, on a rolling basis, at any point of time,

there will be Three Futures Contracts for the Underlying

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Futures

Initial Margin will be paid by both the Buyer and Seller at the time of entering

into a Futures Contract

This will be retained by the Exchange till the transactions are finally squared

up

Mark to Market Margins are payable, calculated based on the Closing price,

at the end of each Trading Day

These are collected from the losers and paid to the winners, on a daily basis

Aditya Birla Money Limited

Copyright Aditya Birla Nuvo Limited 2008

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