After Sebi's new F&O rules, BSE discontinues weekly index derivatives contracts on Sensex 50, Bankex

Days after the Securities and Exchange Board of India (Sebi) introduced measures to limit weekly expiries, the Bombay Stock Exchange (BSE) on Thursday announced the discontinuation of weekly contracts for both Sensex 50 and Bankex indices, effective November 14. 

"Weekly Index Derivatives contracts on SENSEX 50 will be discontinued with effect from November 14, 2024, end of day. New weekly contracts will not be generated after the expiry of existing unexpired contracts. Existing unexpired contracts will continue till their respective expiry," BSE said.

On Tuesday, Sebi introduced a stricter framework for equity index derivatives, including an increase in the minimum contract size, upfront collection of option premiums, and intra-day monitoring of position limits.

One key measure is the reduction of weekly expiries to just one per benchmark index per exchange, effective November 20. This move aims to curb speculative trading and limit the risks associated with uncovered or naked option selling. 

These steps, Sebi said, are part of a broader effort to protect investors and maintain stability in the high-risk environment of index options trading, particularly on expiry days.