NSE Circular: Discontinuation of Weekly Derivatives Contracts for BANKNIFTY, MIDCPNIFTY, and FINNIFTY

The National Stock Exchange of India (NSE) has issued a circular, dated October 10, 2024, announcing the discontinuation of weekly derivatives contracts for three key indices: BANKNIFTY, MIDCPNIFTY, and FINNIFTY. This change is in line with the SEBI circular (SEBI/HO/MRD/TPD-1/P/CIR/2024/132) and an earlier NSE circular issued on October 1, 2024 (NSE/FAOP/64314). The regulatory move aims to enhance investor protection and promote greater market stability in the equity index derivatives market.

Key Details of the Circular:

Effective Date: The new regulation will come into effect from November 20, 2024. From this date, exchanges are allowed to offer derivatives contracts on only one of their benchmark indices with weekly expiries.

Continuation for Nifty 50: NSE will continue to offer weekly index option contracts exclusively on Nifty 50 (NIFTY).

Discontinued Contracts: The final trading dates for the weekly index options of the discontinued indices are as follows:

1. BANKNIFTY: Last expiry date – November 13, 2024.

2. MIDCPNIFTY: Last expiry date – November 18, 2024.

3. FINNIFTY: Last expiry date – November 19, 2024.

This shift aligns with SEBI’s focus on strengthening the derivatives framework, limiting exposure to multiple weekly contracts to improve risk management for investors.

For additional details, members are advised to refer to the updated contract files available on the NSE Extranet server and the NSE website.

Source: National Stock Exchange of India

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