Market Beat
NSE retains Nifty, discontinues other three weekly options contracts As on : 11-Oct-24  11:45

The National Stock Exchange (NSE) has announced that it will retain the Nifty weekly options contract while discontinuing Nifty Bank, Nifty Midcap Select, and Nifty Financial Services.

This decision comes in response to a recent mandate from the Securities and Exchange Board of India (SEBI) that exchanges can offer weekly options expiries on only one index per exchange. The move is aimed at reducing speculation and protecting investors in the index derivatives market.

The last trading days for Nifty Bank, Nifty Midcap Select, and Nifty Financial Services weekly derivatives contracts will be November 13, 18, and 19, 2024, respectively, following which the NSE will discontinue these contracts.

The Nifty 50, which is the underlying index for the Nifty options contract, is one of the most widely traded indices in India and is often seen as a barometer of the overall market sentiment.

While the discontinuation of the other three contracts may disappoint some investors, it is also expected to reduce the overall complexity of the derivatives market and make it easier for investors to manage their risk.

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