MUMBAI: The BSE restarted Sensex on Monday and Bankex Derivative Contracts in its bid to boost derivatives trading on the country’s main stock exchange.
The reintroduction of derivatives contracts comes with a reduced lot size of futures and options and a new Friday versus Thursday expiration cycle, BSE said.
Derivatives are considered high-risk financial instruments to hedge risks in the stock market.
BSE had started Sensex-30 derivatives (options and futures) for the first time in 2000.
The Sensex 30 derivatives consist of 30 of the largest and most actively traded companies on the BSE.
“We are restarting two contracts – Sensex and Bankex. Sensex is a well-known benchmark and barometer for the Indian economy. “It’s showing good performance and a good volatility profile,” BSE Managing Director and CEO Sundararaman Ramamurthy said at Monday’s relaunch event.
According to BSE, the lot size of futures and options has been reduced from 15 to 10 at Sensex and from 20 to 15 at Bankex.
The reintroduction of derivatives contracts comes with a reduced lot size of futures and options and a new Friday versus Thursday expiration cycle, BSE said.
Derivatives are considered high-risk financial instruments to hedge risks in the stock market.
BSE had started Sensex-30 derivatives (options and futures) for the first time in 2000.
The Sensex 30 derivatives consist of 30 of the largest and most actively traded companies on the BSE.
“We are restarting two contracts – Sensex and Bankex. Sensex is a well-known benchmark and barometer for the Indian economy. “It’s showing good performance and a good volatility profile,” BSE Managing Director and CEO Sundararaman Ramamurthy said at Monday’s relaunch event.
According to BSE, the lot size of futures and options has been reduced from 15 to 10 at Sensex and from 20 to 15 at Bankex.
