Nifty retained by NSE, Drops 3 weekly options following new Sebi guidelines

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Nifty retained by NSE, Drops 3 weekly options following new Sebi guidelines
NSE that is National Stock Exchange has announced that it will keep Nifty options weekly contract intact and will discontinue Banknifty, Midcapnify and Nifty financial services options weekly expiry, following new sebi guidelines. Now Banknifty, Midcpnify and Finnifty will only have monthly expiry.

AS per market regulators order, exchanges requires to offer only one weekly options contract and restricts weekly expires to a single benchmark index, effective from November 20, 2024.
AS per new regulations all other indices will move to only monthly expires in order to reduce speculation excessive trading activities on expiry dates.

According to circular by NSE, the last trading day for Banknifty weekly options will be Nov 13, Nifty Midcap Select and Nifty Financial services will end its weekly expiry journey on Nov 18 and 19, respectively.

Following Sebi’s guidelines, BSE too has announced that it will stop weekly contract for sensex 50 and Bankex starting Nov 14. Bse will retain Sensex as its core weekly derivative contract; While Bankex will be discontinued after Nov 18, due to lower volume in it as compared to sensex.

Bankex weekly contract will stop after Nov 18,2024. No new weekly contracts will be created after current expires, but existing contracts will continue until their expiry, Said BSE.

In August, BSE’s notional turnover for index options was Rs. 2,603 Lakh Crore, with Sensex standing at massive 85% of trading volume for the financial year ending March 2024.

These above actions were taken to stop speculation and to safeguard investor’s money as more and more number of traders was speculating on expiry day resulting in overall huge losses.

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