National Stock Exchange, the premier stock exchange of India commenced trading in NIFTY futures in June 2000 followed by trading in Index Options in June 2001 and trading in Options on individual stocks in July 2001.During November 2001 the Stock Exchange commenced trading in Individual Stock Futures. Interest Rate Futures were launched in June 2003. NSE as the principal Derivatives Exchange controls 98% of the trading in Derivatives in the country. Its turnover figures for the last six moths are given below:

Derivatives Trading in NSE - Turnover Figures
(Amount in Crores)

Comparison of the Volumes in the F&O Segment with the Cash Segment
(Amount in Crores)

The turnover in the F&O segment as a percentage of the turnover in the cash segment for the month of January 2004 was 241% which is the highest till date. It can be observed that for the past six months, the volumes in the F&O Segment has been higher than the cash segment. The comparison of the turnover of the F&O Segment with Cash segment for the period August 2003 - January 2004 is as follows:

Derivatives Trading in NSE - Turnover Figures
(Amount in Crores)

SEBI as the knowledge Center in Derivatives Trading and as the market regulator has designed/approved specific derivatives products, and formulated the risk containment measures and other relevant regulations. It is appropriate therefore to know how these are implemented at the operating level in the main trading center i.e. NSE. In the succeeding articles we will briefly describe how the trading, clearing and settlement and margin collection operations are being handled in National Securities Exchange in the process trading in Derivatives products.