In accordance with the new policy by Sebi that restricts weekly expiries to one per exchange, BSE declared that it will stop weekly derivative contracts on the Sensex 50 and Bankex starting in November 2024.
Because Sensex weekly contracts have greater trading volumes than Bankex, they will remain in place. With effect from November 14, the BSE stated on Thursday that it will stop offering weekly contracts for both the Sensex 50 and Bankex, in compliance with the directive from market regulator Sebi to restrict weekly expiry to one per exchange.
Sensex, the BSE’s index of 30 bluechip stocks, will continue to be available through weekly derivative contracts. Just two indices—one from the BSE and one from the NSE—will have weekly expiry under the new Sebi regulations, which go into effect gradually starting on November 20. The sole monthly expiry for all other indices will be
The goal of this action is to lessen concentrated hyperactivity in compounds that are nearing expiration. One options contract on Dalal Street expires on a daily basis at the moment. The BSE now runs two weekly derivative contracts, Bankex and Sensex. Sensex was selected over Bankex due to its higher volume.
New Sebi regulations will only allow for the weekly expiry of two indexes, one from the BSE and one from the NSE. They will take effect gradually starting on November 20. There will be a monthly expiry for all other indices.
Reducing concentrated hyperactivity in derivatives on expiry date is the goal of this action. There is now one options contract that expires on Dalal Street every trading day.
