In line with the Securities and Exchange Board of India's (SEBI) recent mandate, BSE has announced the discontinuation of weekly contracts on Bankex and Sensex 50.
The weekly index derivatives contracts on Sensex 50 will be discontinued with effect from November 14 end of day while Bankex will be discontinued from November 18.
The move is part of SEBI's efforts to strengthen the equity index derivatives framework and increase investor protection and market stability.
According to the BSE circular, no new weekly contracts will be generated after the expiry of existing unexpired contracts. However, existing unexpired contracts will continue till their respective expiry.
BSE will retain its existing Sensex weekly contracts as the sole offering, ensuring continued access to this popular index for investors.
SEBI announced a six-step plan on October 1 to limit retail investor participation in speculative index derivatives. Effective 20 November 2024, stock exchanges will be restricted to offering weekly expiry contracts on only one benchmark index. This move aims to reduce excessive speculation in the futures and options (F&O) segment, where retail investors frequently find themselves incurring losses.