e rst derivative product oered and traded on the BSE and NSE was index futures, which was
introduced in June 2000. is was followed by index options in June 2001. Options and futures on indi-
vidual securities were introduced in July 2001 and November 2001, respectively. All these contracts are
cash settled and do not involve physical delivery of the underlying assets.
e NSE launched short-term and long-term interest rate futures in June 2003. ese futures, valued
on the basis of the concept of zero-coupon yield curve, were cash-settled. However, the trading activity in
interest rate futures was very thin. ...
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