NSE to Discontinue Weekly Expiry for Bank Nifty, Nifty Midcap, and Fin Nifty
The National Stock Exchange (NSE) has announced that it will continue offering weekly options contracts only for the Nifty 50 index while discontinuing similar contracts for Bank Nifty, Nifty Midcap, and Nifty Financial Services indices. This decision follows a directive from the Securities and Exchange Board of India (SEBI), which requires exchanges to limit weekly derivatives contracts to just one benchmark index, starting from November 20, 2024.
Key Dates for Final Trading Sessions
- Bank Nifty: Last trading day on November 13, 2024.
- Nifty Midcap: Last session on November 18, 2024.
- Nifty Financial Services: Final contract on November 19, 2024.
No new weekly contracts will be introduced for these indices beyond these dates. Going forward, the Nifty 50 will be the sole index from NSE with weekly options contracts available.
BSE to Retain Sensex Weekly Contracts
The Bombay Stock Exchange (BSE) will similarly discontinue its weekly contracts for Sensex 50 and Bankex indices. The last Bankex weekly options will expire on November 18, 2024. After that, the BSE will only offer weekly derivatives contracts for the Sensex, starting from November 14, 2024. The decision to retain the Sensex index over Bankex is based on its higher trading volumes and liquidity.
SEBI’s Move to Restructure Expiry Days
This SEBI mandate is aimed at reducing the concentration of trading activity that currently occurs on multiple expiry days throughout the week. At present, options contracts expire almost every day on different indices. However, from November 20, 2024, only two contracts will have weekly expiries—one from NSE (Nifty 50) and one from BSE (Sensex).
Implications for Tradrs
This change is expected to reshape the market dynamics, redistributing trading volumes and potentially altering the strategies of both retail and institutional traders. With fewer expiry days and a narrower range of weekly contracts, traders may need to adjust their approach to focus on the remaining benchmark indices.
As a result, the Nifty 50 and Sensex indices are likely to attract a larger share of the trading activity, influencing how participants approach their trades in the options market.
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