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October 29, 2024
Upcoming regulatory changes: Here’s what you need to know!
In line with the latest regulatory requirements, we’re making some important updates to comply with the guidelines. These changes aim to strengthen investor protection and market stability.
Here’s a quick look:
- Change in Extreme Loss Margins (ELM)
In accordance with the NSE Circular dated 21-Oct-24, w.e.f. 20-Nov-24, an additional ELM of 2% will be charged on all the Short Index Option Positions on the expiry day. Short Index Option Position means:
- All open short index options at the start of the day of the expiry.
- Short index options contracts initiated during the day and are due for expiry on the same day.
Let’s understand with an example:
|
Contract |
Expiry Date |
Type |
Applicable ELM % |
|||
|
20-Nov-24 |
21-Nov-24 |
22-Nov-24 |
28-Nov-24 |
|||
|
Nifty Options |
21-Nov-24 |
Other Than Deep Out Of The Money Contracts |
2% |
4% |
- |
- |
|
Nifty Options |
21-Nov-24 |
Deep Out Of The Money Contracts |
3% |
5% |
- |
- |
|
Nifty Options |
28-Nov-24 |
Other Than Deep Out Of The Money Contracts |
2% |
2% |
2% |
4% |
|
Nifty Options |
28-Nov-24 |
Deep Out Of The Money Contracts |
3% |
3% |
3% |
5% |
- Revision in Market Lot Sizes
As per the NSE Circular, w.e.f. From 01-Oct-24, the revised lot size for index derivatives is as follows:
|
Sr |
Underlying Index |
Symbol |
Existing Lot Size |
Revised Market Lot |
|
1 |
Nifty 50 |
NIFTY |
25 |
75 |
|
2 |
Nifty Bank |
BANKNIFTY |
15 |
30 |
|
3 |
Nifty Financial Services |
FINNIFTY |
25 |
65 |
|
4 |
Nifty Midcap Select |
MIDCPNIFTY |
50 |
120 |
|
5 |
Nifty Next 50 |
NIFTYNXT50 |
10 |
25 |
- Revision in Weekly Expiry of Derivatives Contracts
With reference to the to the SEBI Circular (SEBI/HO/MRD/TPD-1/P/CIR/2024/132) dated 01-Oct-24, please know that w.e.f. 20-Nov-24, each Exchange can provide derivatives contracts for only one of its benchmark indexes with weekly expiry.
In light of this, please note the details of the indices that will be continued/discontinued.
|
Exchange |
Continued weekly expiry contracts (Index) |
Discontinued Weekly Expiry contract (Indices) |
|
NSE |
NIFTY50 |
BANKNIFTY, MIDCPNIFTY, and FINNIFTY |
|
BSE |
SENSEX |
SENSEX 50 and BANKEX |
*The last weekly expiry for the discontinued indices is as follows:
|
S. No. |
Index Name |
Symbol |
Last Expiry Date/Last Trading Date |
|
1 |
Nifty Bank |
BANKNIFTY |
13-Nov-24 |
|
2 |
Nifty Midcap Select |
MIDCPNIFTY |
18-Nov-24 |
|
3 |
Nifty Financial Services |
FINNIFTY |
19-Nov-24 |
|
4 |
SENSEX 50 |
SENSEX 50 |
14-Nov-24 |
|
5 |
BANKEX |
BANKEX |
18-Nov-24 |
For more details on weekly expiry, refer to NSE Circular | BSE Circular.
