Bank Nifty Weekly Options: Brokers Ask SEBI to Restore
Why in the news
In November 2025 the Association of National Exchanges Members of India (ANMI) asked SEBI to bring back weekly Bank Nifty options. It argues they are an important hedge and support liquidity, amid debate on expiry curbs imposed after heavy retail losses.
Key facts
- Petitioner: ANMI; regulator addressed: SEBI.
- SEBI restricted weekly expiries on major indices including Bank Nifty and Nifty.
- Reason: frequent short-dated trading was hurting retail investors who did not grasp derivative risks.
- Goals of the curbs: market stability and less short-term speculation.
Brokers’ case
- Bank Nifty is among the most actively traded indices and mirrors banking stocks.
- Weekly contracts help manage near-term risk, hedge portfolios and widen participation.
- They add materially to exchange turnover and liquidity.
Regulatory context
- The curbs are part of a wider derivatives reform to protect small investors and curb speculative losses.
- Exchanges such as NSE were told to run investor education and risk disclosure steps.
Concepts
| Term | Meaning |
|---|---|
| Bank Nifty (Nifty Bank) | Benchmark of the 12 most liquid large-cap bank stocks on NSE, e.g. HDFC Bank, ICICI Bank, SBI, Kotak Mahindra Bank |
| Weekly option | Short-dated contract expiring every Thursday, or earlier if there is a holiday |
| Monthly option | Expires on the last Thursday of the month |
| Call (CE) | Buyer gets the right to buy the index at the strike price |
| Put (PE) | Buyer gets the right to sell the index at the strike price |
Exam angle
- Number of stocks in Bank Nifty: 12.
- Option holders have a right, not an obligation; the strike price is the fixed deal price.
- Weekly expiry day: Thursday.