BSE Shares Surge 2% Following SEBI Approval for Derivatives Trading on Sensex Next 30 Index
BSE Shares Rise 2% After Approval to Launch Derivative Contracts
On March 5, BSE shares rose 2% after the stock exchange received approval from the Securities and Exchange Board of India (SEBI) to launch derivative contracts for the BSE Sensex Next 30 index.
The BSE Sensex Next 30 index tracks the next largest and most liquid companies in the BSE 100 that are in the derivative segment and are not constituents of the BSE Sensex 30 index. BSE plans to offer cash settled monthly index futures and monthly index options, with the expiry date for the contracts set as the last Thursday of the expiry period.
At 9:27 am on March 5, BSE shares were trading 2% higher at Rs 2,674.5 apiece, aided by a gap-up opening in the market. BSE currently offers derivative contracts for the Sensex, Sensex 50, and BANKEX indices with monthly expiries.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The approval is expected to boost trading volumes and liquidity in the market. Other indices, such as the Nifty Capital Markets index, also saw gains on March 5, with MCX and Kfin Tech leading the gains by rising 2.5% and 2.3%, respectively.
Investor Takeaway
Investors should be aware of the potential for increased trading activity on the BSE Sensex Next 30 index.
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