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November 11, 2024
Upcoming regulatory changes: Here’s what you need to know!
In line with the latest regulatory requirements, we’re making important changes to comply with such 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, an additional ELM of 2% will be charged on all the Short Index Option Positions on the expiry day w.e.f. 20-Nov-24. 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, index derivatives with below-mentioned revised lot sizes will be available from 20-Nov-24.
|
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
As per the SEBI Circular (SEBI/HO/MRD/TPD-1/P/CIR/2024/132) dated 01-Oct-24, we would like to bring to your attention 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 |
For further clarity, please note that the expiry dates/last trading dates of the indices that will be discontinued have been summarised as under:
|
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.
