BSE Halts Weekly Index Derivatives on Sensex 50 and Bankex

The Bombay Stock Exchange has announced the discontinuation of weekly index derivatives contracts on Sensex 50 and Bankex. This decision follows a directive from SEBI, aiming to tighten the framework for equity index derivatives and curb speculative trading, effective from mid-November.

The Bombay Stock Exchange (BSE) has announced a significant change in its operations, declaring the discontinuation of weekly index derivatives contracts on Sensex 50 and Bankex. This decision comes in response to a directive issued by the Securities and Exchange Board of India (Sebi).

The BSE clarified that there will be no new weekly contracts generated for Sensex 50 after November 14, marking the end of the current contracts upon their expiry. The same applies to the Bankex, with no new contracts created post-November 18.

This move is a part of Sebi's strategy to tighten the framework for equity index derivatives and curtail speculative trading. The directive includes several key measures such as increasing the minimum contract size and requiring upfront option premiums, aiming for a more regulated trading environment.

(With inputs from agencies.)