SEBI nod to NSE for weekly options

New Delhi, December 18

Leading bourse NSE today said it has received SEBI’s approval to launch weekly options on Nifty 50 index, a move that will provide hedging tool to market participants to manage the portfolio risk more effectively.

The NSE said it is currently evaluating readiness of market participants for the product launch and will announce a launch date shortly.

Separately, another leading bourse BSE said weekly futures and options contracts on Sensex will be available for trading with effect from December 21.

“With the successful launch of weekly options on the Nifty bank index, there was demand from the market participants for a similar product variant of the Nifty 50 index.

“The weekly options on Nifty 50 index provides an additional hedging tool for market participants to manage the portfolio risk more effectively,” NSE MD and CEO Vikram Limaye said in a statement.

The Nifty 50 weekly options will have seven consecutive weekly expiry contracts (excluding the week where monthly contracts expire).

On expiry of a weekly contract, the exchange will introduce next weekly contract on rolling basis. The existing three monthly options contracts, three quarterly and eight semi-annual option contracts will also continue to be available.— PTI