NSE retains Nifty, drops 3 weekly options following new Sebi guidelines

NEW DELHI: The National Stock Exchange (NSE) has announced it will keep the Nifty weekly options contract while discontinuing Nifty Bank, Nifty Midcap Select, and Nifty Financial Services options, following new Sebi guidelines.
The market regulator’s order requires exchanges to offer only one weekly options contract and restricts weekly expiries to a single benchmark index, effective from November 20.
All other indices will move to monthly expiries under the new regulations to reduce excessive trading activity on expiry dates.
According to NSE, the last trading day for Bank Nifty’s weekly options will be November 13, while Nifty Midcap Select and Nifty Financial Services will end on November 18 and 19, respectively.
Following Sebi’s guidelines, BSE has also announced it will stop weekly contracts for Sensex 50 and Bankex starting November 14. BSE will retain Sensex as its weekly derivative contract, while Bankex will be discontinued after November 18, due to lower volumes compared to Sensex.
Weekly contracts on Bankex will stop after November 18, 2024. No new weekly contracts will be created after current ones expire, 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 the Sensex contributing 85 per cent of trading volumes for the financial year ending March 2024.
Currently, there is an options contract expiring every trading day on Dalal Street. Investment firm Jefferies noted that with only two expiry days per week, traders might adjust their behavior, and the shift could reduce the impact on premiums.