The National Stock Exchange (NSE) will halt weekly options trading for the Bank Nifty (BANKNIFTY), Nifty Midcap Select (MIDCPNIFTY), and Nifty Financial Services (FINNIFTY) indices by mid-November 2024. The final trading dates are November 13 for BANKNIFTY, November 18 for MIDCPNIFTY, and November 19 for FINNIFTY. From November 20, 2024, weekly derivatives will be offered exclusively on the Nifty 50 Index as part of a broader strategy to strengthen investor protection and ensure market stability.
The Securities and Exchange Board of India (Sebi) recently introduced a stricter framework for equity index derivatives, which includes increasing the minimum contract size, upfront collection of option premiums, and intra-day position limit monitoring. Sebi’s new regulations will take effect in phases starting November 20.
This, after a Sebi study showed that 93 per cent of individual traders in the F&O segment incurred losses from FY22 to FY24, amounting to ₹1.8 lakh crore. Other new rules include increasing the minimum contract size for index derivatives from ₹5-10 lakh to ₹15-20 lakh.
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Source: CNBCTV18
News Desk
