foreigner invest in india

#1
hi ,everyone,
I am foreigner in hongkong , should you kind enough to tell me something about india stock market ?

1)can I invest in india stock market?

2)How to invest ?

3)is there the same institution in india such as SIPC( in the US ) ?

In the U.S. , the Securities Investor Protection Corporation (SIPC) maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms.

The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000.

4)is there Deposit Insurance in india to protect foreignersDepositor?

5)is there special tax law about foreign investment?

6)can you give one copy of nifty index option introduction?
 

AW10

Well-Known Member
#2
Welcome to the forum ourzero. I am attempting to answer some of your doubts to the best of my knowledge.

1)can I invest in India stock market?
Retail trader/investor on non-indian origin are not allowed the access to Indian stock market. But foreign institutional investors / hedge funds etc can invest after taking right approvals from
authorities. As a result of that , they or their broker might be providing regular reports to authority so that right regulatory checks are in place.

3)is there the same institution in India such as SIPC( in the US ) ?
4)is there Deposit Insurance in India to protect foreigners’Depositor?
No, I don't think we have anything like that. You can find more info about this form Securities and Exchange Board of India - The governing body that oversees the primary and secondary markets in India.
their site is http://www.sebi.gov.in.

6)can you give one copy of nifty index option introduction?
Nifty is the index of National Stock Exchange. You can find lot of info about this from www.nseindia.com site. You can explore in NCFM section which has got good Education material for their certification.

Hope that doesn't disappoint you from trading in Indian market. Even if you are limited to trade directly, you can always use etfs like PIN, INP and other funds to indirectly trade and earn from the swings of Indian indices.

Hope this helps.
Happy Trading
 
#3
Many Thanks.
I have looked through the web http://www.nseindia.com/
I cannot find nifty contract description , via google I find something ,but still confused , may you kind enough to answer me the question ?
1) are there two kinds of index option in india market?
Monthly and weekly(there is no weekly serial option in hongkong ) ?

2) what is the margin requirement for them ( monthly and weekly ,if there is weeklty)?

3) I find a form , may you help me to fill out it?

Security Symbol For monthly and weekly
Underlying for monthly and weekly
Contract Multiplier for monthly and weekly
Contract Period 1, 2, 3 months & 1, 2 weeks
Exercise Style American
Settlement Style Cash
Tick size
Premium Quotation
Strike price Intervals
Trading Hours
Last Trading/Expiration
Final Settlement
settlement price
 

AW10

Well-Known Member
#4
Plz visit following sub section on NSE site ..and u will find detailed info about
various contracts.

Home > F&O > Contracts Information > Contract Specifications

There is no weekly contract. Just monthly contracts which expires on last Thursday of the month. Contract multiplier is 50 giving us the value of contact at current market price of 5050 equal to 5050 *50 = 252,500 INR. (appox 5000 USD using rate of 1 USD = 50 INR) Margin is about 15% which results in appox 37k INR = 750 USD.

If you are interested in Options Trading then please fiilter out Futures realted info from NSE site. In many places, you will find that Futures and Options (F&O) is spoken as single
category.. but in reality they are two different products.

Here is the data that u are looking at..

Security Symbol For monthly and weekly = chk it out on nse site.
Underlying for monthly and weekly = always monthly
Contract Multiplier for monthly and weekly = 50.
Contract Period 1, 2, 3 months & 1, 2 weeks = 1 month
Exercise Style American = Eupropean
Settlement Style Cash = Cash
Tick size = 0.05 Rs. or INR
Premium Quotation = ?????
Strike price Intervals = 50.. but strikes with xx50 are not very liquid..hence most of the
trading is in strike with xx00.
Trading Hours = 9.55 am to 3.30 pm IST (which is 5.5+ gmt)
Last Trading/Expiration = Last thursday of month
Final Settlement = ????
settlement price = Adjusted closing price of Index Spot value as published by exchange.
it is slightly different from last traded price cause exchange takes average price of last 30 or 60m and publishes the adjusted closing price. This helps in avoiding any last minute index manipulation by market makers who swing the mkt near strike price specially on expiry day..

hope this helps.
 

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