What is roll over transaction in shares in India?

Answer 1

Roll over is not done in shares but in derivatives segment of share market. Derivatives is popularly known as "F &O" in Indian stock markets.

Whatever position you have taken in "futures" will be squared off at the end of the "futures" end date. Instead you square off the position in near month and initiate a fresh position in "mid month" or "far month" in futures, is "Roll over".

Future contracts are always available in 3 different expiries- near month , mid month and far month. For example, on NSE the near month contracts will end on 28th June 2007, mid month on 26th July and the far month on 30th Aug 2007.

Hence if you purchase / sell a futures contract now for near month, it will be automatically exercised on 28th June. Suppose before this, you square off and took a same position in July or Aug contracts, it will be called as "roll over".

Answer 2

if you have bought shares in the F&O segment and if you dont want to sell them during the current settlement (last thursday of the month) you can continue holding it by paying the difference to the broker to the next settlement. (You have to inform the broker to roll over your shares to the next settlement)

Answer 3

You know I was asking myself the same question trading in the forex market. I was using one of the trading platforms and it has this roll over thingy. Funny ain't it?