BSE relaunches Sensex, Bankex derivatives contracts

PTI, May 16, 2023, 9:17 AM IST

BSE on Monday relaunched Sensex and Bankex derivative contracts in its bid to boost derivative trading at the country’s premier bourse.

The relaunch of derivative contracts comes with a reduced lot size of futures and options and a new expiry cycle of Friday from Thursday earlier, BSE said.

The relaunch evoked a good response from market participants. Nearly 100 members participated in trading with a total turnover of Rs 53.12 crores with an open interest of 252 lots, the BSE said in a statement.

Derivatives are considered to be high-risk-reward financial instruments aimed at hedging risk in the equity market.

BSE had launched Sensex-30 derivatives (options and futures) for the first time in 2000. The Sensex-30 derivatives are made up of 30 of the largest and most actively traded companies on BSE.

”We are relaunching two contracts Sensex and Bankex. Sensex is a well known benchmark and a barometer of India’s economy. It has good performance and a good volatility profile,” BSE Managing Director and CEO Sundararaman Ramamurthy said at the relaunch event on Monday.

The lot size of futures and options has been reduced to 10 from 15 for Sensex, and to 15 from 20 in case of Bankex, according to BSE.

It also said that the revisions will provide multiple additional trading opportunities and strategies for market participants..

”As the oldest and largest stock exchange in India, BSE has always been committed to providing innovative and cost-effective solutions to meet the evolving needs of our customers. These initiatives will encourage more people to attain their financial objectives by trading in a vibrant exchange,” Ramamurthy added.

Sensex futures May 19 weekly expiry was the most active contract, the exchange said and added that brokers across the country participated in Mondays’ trade.

Member East India Securities Ltd. was the first to trade in the new contract on the relaunch day, BSE said.

The BSE is taking several measures to create vibrancy in the exchange, S S Mundra, Chairman of the BSE said.

The BSE is progressing on the three pillars of innovation, technology, and commitment which will help in achieving success in this environment, he added.