BSE to announce weekly F&O contracts on September 19

The Bombay Stock Exchange (BSE) on Friday said that it will announce new weekly futures and options contracts in the equity derivatives segment in the month of September.

In a notice, the exchange mentioned that it will introduce 7 weekly futures and 7 weekly options contracts on stocks in equity derivatives with effect from Thursday, September 19, 2019.

Interestingly, these weekly futures and options contracts will expire on every Thursday of the week, excluding monthly expiry week. The exchange also added that in case Thursday is holiday, the contract expiry will be on working day prior to Thursday and new serial weekly future and options contracts shall be introduced after expiry of the respective week's contract.

Trading parameters such as tick size, price bands and market lot, among others, will be the same as the existing futures and options contracts on existing stock derivatives.

The exchange in the notice also provided a list of 149 stocks along with tick size, lot size and price band on which weekly futures and options contracts will be available. The tick size is same for all the stocks mentioned in the list, i.e. 0.05. The price band for each stock is based on its delta value and is computed and updated on a daily basis.

Meanwhile, the BSE Sensex bounced back smartly from day's low and closed at 37,332.79, up 263.86 points or 0.71 per cent on Friday.