F&O options

I have two queries:

1. Why index option in india are not American

2. Why STT is not charged to the buyer of a futres contract

Please help

ask mr p chidamberam or mr manmohan singh or mr pranav mukherji

Thanks a lot man, at least u replied - does'nt matter whatever.:rofl:

what will be the future in reliance infrastructure?

hi..
In India we have both types of options , american as well as european. one type is used on index options n the other on stock options. stt is calculated on the sell side for ease of calculation. a futures buyer would have to sell his futures, either himself or it would be squared off by the exchange. he would have to pay the stt then,

Hi anurag,

Thanks for ur answer.

In the first case my question is why do we not have American index options and only European options - does this works the same way in other countries also.

Also in the second i need to pay stt in cash segment on buy as well as sell then why not in f&O.


Prabhat

hi.
I really dont know about the other countries, but in India , the idex options carries the european model (ce) and the stock options carry the american model (ca).
regarding ur second query,the stt is calculated on the total turnover. for instance we pay 1250 rs as stt on one crore of turnover in the capital mkt segment. it really does not make a differnce whether it is paid on the buy side or the sell side or half on the buy side & half on the sell side.