Equity Derivatives (NISM-Series-VIII) is a rigorous, India-specific masterclass written by the institution that sets the standard: NISM, SEBI’s capacity-building arm. Across ten chapters, it builds from the ground up—explaining how a stock index is constructed, how futures and options contracts are priced and settled, how complex strategies are assembled, and how margins are computed on an Indian exchange. Its distinguishing quality is method: concepts are never left abstract, and contract specifications are dissected against live NSE and BSE quotes.

Mastering Options Strategies & Payoffs

The book takes the math out of the theoretical realm and puts it on the page. Every hedge is run through both a rising and a falling market to demonstrate that the effective price is locked either way.

• Every Payoff Mapped: Options are analyzed from both the buyer’s and writer’s perspectives. You will learn to construct vertical spreads, straddles, strangles, collars, and butterfly spreads—each complete with strike-and-premium tables and explicitly stated maximum profit/loss and break-even points.

• The Black-Scholes Model: The core math behind pricing, including cost of carry and the “Greeks” (Delta, Gamma, Theta, Vega, and Rho), is defined and applied.

• Put-Call Parity & Arbitrage: Explains cash-and-carry and reverse cash-and-carry arbitrage using live market data.

The 2026 SEBI Overhaul (Updated & Verified)

This March 2026 version is written against SEBI’s recent massive overhaul of the equity derivatives framework. Because every regulatory statement is footnoted directly to its source circular, the book doubles as an independently verifiable reference.

• Contract Specs: Covers the rise in minimum contract value to ₹15 lakh and the new expiry-day rationalization (NSE Tuesdays, BSE Thursdays).

• Risk & Margining: Explains SPAN margining, initial margin at 99% VaR, cross margining, and the delta-adjusted Future Equivalent Open Interest (FutEq OI) formulation.

• Taxation & Accounting: Details the STT rates drawn from the Union Budget 2026-27, how F&O income is treated under Profits and Gains from Business, and accounting entries per ICAI guidance.

Who Should Buy This Book?

• Candidates for NISM-Series-VIII Certification: This is the mandatory, prescribed workbook to clear the SEBI exam.

• Traders & Investors: Anyone who trades index/stock futures and options and wants to understand exact payoffs, trading costs, and taxation properly rather than anecdotally.

• Broking Firm Staff: Essential for Dealers, Terminal Operators, Authorised Persons, and F&O Sales Staff.

• Risk & Operations Professionals: For those needing a working command of SPAN margining, position limits, and collateral rules.

About the Publisher

National Institute of Securities Markets (NISM)

The National Institute of Securities Markets (NISM) is an educational institution established in 2006 by the Securities and Exchange Board of India (SEBI). Guided by a vision to enhance the quality of securities markets, NISM develops capacity-building programs and administers the mandatory certification examinations for professionals engaged in India’s financial markets. Their certifications serve as the ultimate benchmark for knowledge and compliance in the industry.