NSE to discontinue weekly index derivatives for Bank Nifty, Nifty Midcap Select, Nifty Financial Services

As per the changes, the NSE will retain only one tradable index — the Nifty 50 — for weekly derivatives contracts.

The National Stock Exchange (NSE) will discontinue weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services, effective from November 13, 18, and 19, respectively, the exchange informed in a circular dated October 10.

As per the changes, the NSE will retain only one tradable index — the Nifty 50 — for weekly derivatives contracts.

SEBI's recent circular outlines new regulations for the futures and options trading segment. Beginning November 20, exchanges will be required to limit weekly option expiries to one index per exchange.

Additionally, exchanges will be tasked with monitoring intraday positions at least four times a day. Penalties will be imposed for any breaches of intraday limits, similar to the penalties currently applied at the end of the trading day.

On October 1, market regulator SEBI introduced a series of measures aimed at strengthening the index derivatives framework to protect investors and enhance market stability. One of the key changes includes limiting derivatives contracts to a single benchmark index per exchange with weekly expiries.

These steps were implemented in response to the speculative nature of index derivatives trading, especially on contract expiry days.

Following SEBI’s guidelines, the BSE announced on October 3 that weekly index derivatives contracts for the SENSEX 50 will be discontinued from November 14, while those for BANKEX will be discontinued from November 18.