The National Stock Exchange (NSE) yesterday made an announcement that it has received the approval from Securities and Exchange Board of India to launch weekly options on Nifty 50 index. Vikram Limaye, Managing Director and Chief Executive Officer, NSE said, “With the successful launch of weekly options on the Nifty bank index, there was demand from the market participants for a similar product variant of the Nifty 50 index.”

He added, “The weekly options on Nifty 50 index provides an additional hedging tool for market participants to manage the portfolio risk more effectively.” The NSE has said that the announcement of the launch date will shortly be released, after the readiness of market participants is evaluated.

According to the circular released by NSE, dated 18 December 2018, the expiry date of the contract will be “Every Thursday of the week. In case the Thursday is a trading holiday, the previous trading day shall be the expiry/last trading day. All contracts shall expire at the normal market closing time on the expiry day or such other time as decided by Exchange.”

In the same circular, National Stock Exchange stated that the Contract cycle will comprise of “7 weekly expiry contracts excluding the expiry week of monthly contract. New serial weekly options contract shall be introduced after expiry of the respective week’s contract.”

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