Securities and Exchange Board of India (Sebi) decided that equity derivative expiries will be prevented on Tuesday or Thursday. This change can be effect from June 15, according to the market regulator, informing the decision on Monday. The step is aimed at improving investor protection and improving market strength.
In a statement on Monday, the reporter explained the market that the expiration of the week expiring days while repairing stock replacement.
Progress marks a shift from Sebi’s decision, announced in October, to prevent the number of weekly options with a benchmark index per bourse.
Since then, bourses have related their weekly guidelines, but also attempted to offer contracts that will end different days of the week.
The system of “many expiry days” has “potential to live expiry of the day hyperactivity”, which can prevent investment and Sebi protection.
Exchange test attempts to contracts that end in different days go to SEBI’s intention to reduce opportunities for dealers’ investors.
Exchanges should now find Sebi’s first authorization for repeating the day to settle Derivatives contracts, it is noted.
Now, NSE offers expires on Thursday while BSE offers them on Tuesday.
