When will the new F&O rules come into effect?
When will the new SEBI rules be implemented?
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The Derivative framework is a consultation paper at this stage. And Sebi has said they received 6000 odd responses on the paper. So once Sebi and relevant commitees go through the feedback and inputs, theyll announce the implementation framework, timeline and other details.
There will be only 1 weekly expiry per exchange. Does that mean BSE will continue with weekly expiry of sensex or bankex as it doesn’t have any other instruments like finnif;midcp as in NSE
Right, bankex, finnifty midcp etc will have monthly expiry only.
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Is this confirmed???
Not yet, we are assuming based on traded volumes.
OK. Thank you
I really hope they don’t do it. Daily expiry is proving to be very good for option writing.
You can check weekly option date in option chain. 1st Oct expiry date is showing for bank nifty so these rules won’t be implemented in oct.
Weekly contracts get activated one month prior to their expiry, so even if SEBI notifies the final rules on October 1st (quite agressive timeline expectation) still you’ll have bnf weekly contracts expiring on 1st week of November, as SEBI can’t notify the final rules to be implemented with immediate effect as that would mean halting the non-weekly (as per the new notified rules) index options which are already active, this is not possible.
Also considering that exchangey will need some time to get their systems ready for the intraday position monitoring rule and also hoping that the brokers would be given some time to comply with the upfront margin collection rule, I think the implementation date would tentatively be 1st Jan 2025.
There is a possibility that few rules come into effect/implemented sooner than others, but that’s not the usual norm for implementation of regulatory rulings