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 "National Stock Exchange, NSE")
Last week, on a related note, BSE announced that it would end weekly derivative contracts linked to Bankex (.BSEBANK) and Sensex 50, retaining only contracts linked to its benchmark BSE Sensex, an index of 30 blue-chip stocks. Photographer: Dhiraj Singh/Bloomberg
India’s National Stock Exchange said on Thursday it would retain weekly derivatives contracts linked to the benchmark Nifty 50 index, after the country’s markets regulator announced stricter rules for equity derivatives.
The move follows the Securities and Exchange Board of India’s (SEBI) order requiring exchanges to reduce the number of weekly options contracts available to investors to one from November 20.
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The new rules were put in place to curb a recent surge in options trading by retail investors, which the regulator and government view as a risk to household finances.
A SEBI study showed that individual traders recorded net losses totaling 1.81 trillion rupees ($21.57 billion) on futures and options in the three years to March 2024, and that only 7.2% of them made a profit.
NSE has announced that it will abandon its other three weekly options linked to Bank Nifty, Nifty Financial Services and Nifty Mid-Cap.
Last week, on a related note, BSE announced that it would end weekly derivative contracts linked to Bankex (.BSEBANK) and Sensex 50, retaining only contracts linked to its benchmark BSE Sensex, an index of 30 blue-chip stocks.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: October 10, 2024 | 10:41 p.m. STI