The National Stock Exchange (NSE) on Tuesday said it has received market regulator Securities and Exchange Board of India (Sebi)'s approval to launch weekly options on NIFTY 50 Index.

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"NIFTY 50 weekly options will have seven consecutive weekly expiry contracts (excluding the week where monthly contracts expire) where after the expiry of a weekly contract, the exchange will come up with next weekly contract on a rolling basis," NSE said in a statement.

The existing three monthly options contracts, three quarterly and eight semi-annual option contracts will also continue to be available.

NSE said that the contracts will expire on Thursday of every week and if that day is a trading holiday, then it will expire on the previous trading day.

Also, the strike interval for the weekly options will remain the same as monthly contracts.

“With the successful launch of weekly options on the NIFTY BANK index, there was demand from the market participants for a similar product variant of the NIFTY 50 index. The weekly options on NIFTY 50 index provides an additional hedging tool for market participants to manage the portfolio risk more effectively,” said Vikram Limaye, MD and CEO, NSE.

NSE recently launched weekly options in the currency derivatives segment on the USD-INR currency pair.

First Published:Dec 18, 2018 6:39 PM IST