BSE relaunches Sensex, Bankex derivative contracts with reduced lot size, new expiry cycle

BSE, Asia’s oldest stock exchange, relaunched Sensex and Bankex derivative contracts on Monday in its bid to boost derivative trading.

The country’s premier bourse has relaunched the derivative contracts with a reduced lot size of futures and options and a new expiry cycle of Friday as against the expiry cycle of Thursday earlier.

“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 stock exchange has reduced the lot size for futures and options contracts of the Sensex to 10 from 15 earlier and for the Bankex, it has been reduced to 15 from 20.

Earlier in the year 2000, BSE had launched Sensex-30 derivatives (options and futures) for the first time. The Sensex-30 derivatives are made up of 30 of the largest and most liquid stocks listed on BSE.

The new expiry cycle for BSE’s newly launched options products is Monday to Friday. It is different from the rival exchange NSE’s Nifty and Bank Nifty weekly option contracts that expire on Thursday.

Also Read: BSE net profit rises 24% in March quarter

Last week, BSE reported a 24% rise in Q4FY23 net profit at ₹88.61 crore as against ₹71.52 crore in the same quarter a year ago.

Its revenue from operations grew 11% at ₹227.01 crore in the March quarter from ₹204.59 crore in the year-ago period.

The exchange has declared a final dividend of ₹12 per equity share for the FY23.

At 2:35 pm, the shares of BSE were trading 0.42% lower at ₹547.40 apiece on the NSE.