Bye Bye Bank Nifty: NSE Ends Most Popular Weekly Derivatives From Nov 13

In a move aimed at strengthening the equity index derivatives framework and enhancing investor protection, from today onwards Bank Nifty ceases to exist from November 13. The National Stock Exchange ( NSE ) will discontinue weekly derivatives contracts on three key indices: Bank Nifty, Midcap Nifty, and Fin Nifty.

“This is in continuation to SEBI circular and Exchange circular download ref no: NSE /FAOP/64314 dated October 01, 2024, on measures to strengthen equity index derivatives framework for increased investor protection and market stability,” the release said.

The Midcap nifty will cease to exist from November 18. 

This decision aligns with the guidelines issued by the Securities and Exchange Board of India ( SEBI ) in its circular reference number SEBI/HO/MRD/TPD-1/P/CIR/2024/132. The regulatory body has mandated that exchanges can offer weekly derivatives contracts on only one of their benchmark indices.

Key Points

Last Trading Dates:

Bank Nifty (BANKNIFTY): November 13, 2024
Midcap Nifty (MIDCPNIFTY): November 18, 2024
Fin Nifty (FINNIFTY): November 19, 2024

Going Forward:

NSE will continue to offer weekly index options on the Nifty 50 Index (NIFTY) only.
No new weekly index option contracts will be generated for the discontinued indices beyond the specified last trading dates.
This change is expected to streamline the derivatives market and reduce complexity for investors. However, it may impact traders who frequently use these indices for short-term strategies. Traders are advised to adjust their trading strategies accordingly.