Among Sebi’s revisions to F&O regulations, the expiration of the Bank Nifty weekly contract is anticipated to affect trade volumes and possibly influence trading behavior. Experts predict both short-term and long-term consequences. Because of its large turnover and affordability, the Bank Nifty weekly contract has been a popular option for retail traders. Millions of small investors have flocked to the Bank Nifty weekly options since the National Stock Exchange (NSE) introduced them in 2016, but Wednesday marked the end of an era for India’s most popular derivatives instrument.
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Before the Securities and Exchange Board of India (Sebi) implements new, more stringent rules next week to limit extensive retail trading, trading of the well-liked weekly options contract came to an end. Only one weekly expiry will be permitted per exchange under Sebi’s new regulations, which are also intended to promote market stability. The Nifty 50 weekly has been kept by the NSE, whereas the Bank Nifty weekly has been discontinued. The monthly derivatives contract for the Bank Nifty is still in effect. One expiration per day of the week will likewise be removed from the calendar with the end of weekly contracts other than Nifty.
