NSE to Discontinue Weekly Contracts on Bank Nifty, Nifty Midcap Select, and Nifty Financial Services

Current Context: The National Stock Exchange (NSE) has announced it will discontinue weekly index derivatives contracts on Bank Nifty, Nifty Midcap Select, and Nifty Financial Services.

• This change, effective from November 13, 18, and 19, 2024, respectively, follows the new rules set by the Securities and Exchange Board of India (SEBI).
• SEBI's regulation limits exchanges to offering only one weekly index derivatives contract to simplify the market and enhance investor protection.
• Weekly derivative contracts for Nifty 50 will continue as per the new guidelines.

Question:

1 Which of the following indices will NSE discontinue weekly index derivatives contracts for as per the new SEBI guidelines?

• A) Nifty 50
• B) Bank Nifty, Nifty Midcap Select, and Nifty Financial Services
• C) Nifty 50, Bank Nifty, and Nifty Financial Services
• D) Nifty Midcap Select and Nifty 50

Answer: B) The NSE has announced the discontinuation of weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services in compliance with the SEBI regulation.