New rules shake up NSE: Only Nifty 50 to offer weekly derivatives. Details inside

The National Stock Exchange (NSE) will end weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services. The changes take effect on November 13, 18, and 19, respectively, as stated in a circular dated October 10. After these changes, the Nifty 50 will be the sole index available for weekly derivatives trading.

This move follows SEBI’s recent directive, which mandates exchanges to limit weekly options expiries to just one index per exchange, starting November 20. The new regulations also require exchanges to monitor intraday positions at least four times daily, with penalties for breaches similar to those for end-of-day violations.

On October 1, SEBI announced a series of reforms aimed at enhancing investor protection and market stability within the derivatives segment. A key element of this reform is the restriction of weekly derivatives contracts to a single benchmark index per exchange.

These changes come in response to the volatility observed during contract expiry days, which has been a concern for market stability. In line with these regulations, the BSE also confirmed it will discontinue weekly index derivatives for the SENSEX 50 on November 14 and for BANKEX on November 18.