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Tuesday, December 25, 2007

Indian Markets Developing

Two new proposals this month.

In the Indian markets, it was difficult to take a short position so far. Some time ago, ICICI Bank came out with an FPO where they virtually guaranteed allotment of shares to retail investors for Rs.900 when the shares were trading around Rs.930 in the market. I was evaluating whether I could apply for the maximum shares under retail segment and then short the equivalent in secondary market and capture the Rs.30 per share almost risk-free. That is when I found out that short positions could not be carried for more than one day. It would be interesting to see if the market progress at a more normal levels than what it is doing now after the proposal goes into effect.

The new F&O products bring LEAP type longer term options, volatility index similar to VIX, exchange traded products for strategies, exchange traded currency F&O, Bond index F&O etc.

1 comment:

Pebbles said...

You write very well.

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