There will be a wider choice available for the Indian investors as capital market regulator the Securities and Exchange Board of India (SEBI) has given the green signal to the global stock indices to trade in the Indian Markets. The products will be introduced by these stock exchanges in the equity derivatives segment.

An application along with the risk management framework needs to be submitted to the SEBI for approval.

The brokers believe that this will be a great way of increasing the market share as a lot of global products will increase the portfolio for the investors. Cross-listing agreements have been made between Chicago Mercantile Exchange (CME), the London Stock Exchange (LSE) and the National Stock Exchange (NSE).

This will give the option of diversification to the Indian investors in the already volatile markets. The greatest advantage of this decision of trade would be that all the products can be traded and settled in rupee terms. No fresh contract under the deal would be introduced if it fails to meet the regulations for 3 consecutive months.