BSE
BSE to retain weekly options linked to Sensex after SEBI's new F&O framework: Report
Mumbai/IBNS: The BSE will continue offering weekly derivative contracts linked to the Sensex, after the new, stricter regulations on equity derivatives set by India's market regulator the Securities and Exchange Board of India (SEBI), Reuters reported, citing two sources familiar with the matter.
On Tuesday (Oct. 1), SEBI instructed exchanges to limit the number of weekly options contracts available to investors to just one, effective from November 20.
This move comes after a surge in retail investors engaging in options trading, which the regulator and government see as a potential threat to household finances.
A SEBI study revealed that individual traders incurred a combined net loss of Rs 1.81 lakh crore in futures and options trading between 2021 and March 2024, with only 7.2 percent of traders profiting.
Currently, the BSE operates two derivative contracts linked to indices: BSE Sensex and BSE Bankex.
The BSE has not yet responded to a request for comment from Reuters.
In August, BSE's index options had a notional turnover of Rs 2,603 lakh crore, with Sensex accounting for 85 percent of trading volumes during the fiscal year ending in March 2024, as per reports.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
