According to a circular dated 10th October, the National Stock Exchange (NSE) will discontinue weekly index derivatives for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services starting from 13th November, 18th November, and 19th November, respectively.

Following recent changes, the NSE will keep only one tradable index, Nifty 50, for weekly derivatives contracts. The Securities and Exchange Board of India’s (SEBI) circular mandates exchanges limit weekly option expiries to one index per exchange starting from 20th November.

Additionally, exchanges must monitor intraday positions at least four times a day, and any breaches of intraday limits will result in penalties similar to those imposed at the end of the trading day.

On 1st October, SEBI introduced several measures to strengthen the index derivatives framework, aiming to protect investors and enhance market stability. A key change is limiting derivatives contracts to one benchmark index per exchange with weekly expiries.

These steps address the speculative nature of index derivatives trading, particularly on contract expiry days. Following SEBI’s guidelines, BSE announced on 3rd October that weekly index derivatives for the SENSEX 50 will end on 14th November and for BANKEX on 18th November.

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