BSE Relaunches Sensex and Bankex Derivative Contracts, Changes Expiry Cycle, Lot Size

BSE relaunches Sensex and Bankex derivative contracts, changes expiry date and lot size.

BSE relaunched derivative contracts of its benchmark indices, Sensex and Bankex, on Monday. The move was intended to boost derivative trading on the Exchange. With the relaunch, the derivative contracts will come with other changes in expiry date and lot size, BSE said.

Derivatives are high-risk, high-reward financial products that hedge risk in the equities market. In 2000, the BSE introduced Equity Derivatives, including options and futures. Later, in 2003, Bankex was introduced.

BSE MD and CEO Sundararaman Ramamurthy said that BSE is “relaunching two contracts-Sensex and Bankex”, at the relaunch event on Monday.

The Sensex is a well-known benchmark and economic barometer in India. BSE’s 30 largest and most regularly traded corporations are included in the BSE Sensex derivatives. It has a decent volatility profile and a strong performance.

The S&P BSE Bankex index comprises S&P BSE 500 components classified as banking sector members under the BSE industry categorization system.

According to the BSE, the expiry period of these contracts has been switched from Thursday to Friday following the relaunch. In addition, the lot size for Sensex contracts has been cut from 15 to 10, and for Bankex, it has been reduced from 20 to 15.

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