Sebi is looking for more details of bourses before the Date Shift Options

Copyright © HT Digital Streams Limit all rights reserved. Thanks to the change in expiration day, the BSE market share in index options based on premium turnover increased to 15.3% in the March term. (Pti) Summary NSE sought regulatory approval to move its weekly Nifty Options array to Tuesday from Thursday; BSE keeps cards near the chest as the battle for market share between India’s top two stock exchanges, the Capital Markets regulator has both instructed to provide modalities on a proposed shift in their weekly option dates for index options before approving any changes, two people who are aware of the matter. “The Securities and Exchange Board of India (Sebi) has instructed the boures to surrender about when they would issue a circular to their brokers about possible expiry of the day shift to ensure markets have enough time to adapt to the change,” the first person said. He explained that the contracts for weekly index divorers, such as BSE and NSE, have at the same time three monthly contracts – for example. June, July and August (known as the front, middle and distant months respectively)- on a bass; That is, after the June expiration, July the leading month, August, the middle of the month and September, will be the distant month and so on. Read also | Nifty Options Activity indicates a positive market. The part of such information would enable Sebi to work out a solution that would be acceptable to both the exchanges, “the second person said. Inquiries by e -mail to NSE, BSE and Sebi became unanswered. The case originated in a Sebi circular on October 1 last year, which increased the costs for the trading index derivatives to £ 15-20 lakh of £ 5-10 lakh per contract, and weekly expires in options to one day per exchange of several weekly decay earlier, among others, to do the retail in the retail in options. The circular left the choice of weekly expiry after the exchanges. For example, NSE continued Weekly Options on the Midcap Select Index that expired on Monday, Finnifty Tuesday, Bank Nifty Wednesday and Nifty Thursday. BSE has expired on Friday a Sensex options and a banking options expire Monday. NSE was limited to offering only Nifty options, which it retained on Thursday, and BSE on the Sensex Options Contract Friday after October 1st. In January this year, however, BSE chose to move its weekly expiry to Tuesday of Thursday to further away from NSE and enjoy a day more of the volumes – an expiry of Tuesday means that the exchange sees the volume division over Friday, Monday and Tuesday. In an expiry of Thursday, the volumes over two days – Wednesday and Thursday, would be concentrated. Read also | The tension rises on the border, but FPIs are not worried in March this year; NSE told Sebi that it would be effective in April, that it would shift its cute expiry to Monday, just a day before BSE’s expiration. The regulator instructed NSE to maintain status quo as to issue a consultation document on the final expiry day. The newspaper, released on March 27, asked public comment on the exchange of choosing either an expiry of Tuesday or Thursday. The SEBI Composition that followed the Receipt of Public Comment on May 26, either finalized an expiry of Tuesday or Thursday for recognized stock exchanges such as NSE, BSE, MSEI and NCDEX. NSE subsequently applied for an expiry of Tuesday. The NSE shift is subject to SEBI approval, but the market’s stakeholders expect a shift to Tuesday by NSE would lead BSE to move its expiry to Thursday, enabling NSE to regain the lost market share of the latter. For example, thanks to the change in the expiry of the day, the BSE market share in index options rose based on premium turnover to 15.3% in the March quarter of 13.9% in the previous quarter, with the NSE market share dropping proportionally to 84.7% in the same period, as per exchange data. Read it | Sebi’s options plan that has encouraged many people could be a review “the extra day if NSE victory will mean some recovery on Tuesday, as the exchange will get an extra day of volumes,” said Rajesh Palviya, senior vice president (derivative and technical) ‘s-security. The importance of trading index options as an important source of income for exchanges is underlined by the contribution of this product to total transaction costs earned by exchanges. Transaction costs contributed 50% of NSE’s independent total revenue of £ 5,860 crore, or £ 2,930 crore, in the quarter ended March. Of these, equity options (index plus stocks) accounted for about 76%, or £ 2227 crore, with the cash market and stock -futures segment each contributing 12%. NSE has been offering Nifty Weekly options since February 2019, while BSE has since May 2023 Sensex -Weekly Options to start of Sensex Relateded Sensex options. And read | NSE vs BSE: Sebi’s curbs, Exchange Moves Reshape Options Market Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Options Read Next Story