In an effort to increase derivative trading at the country’s leading market, BSE on Monday relaunched the Sensex and Bankex derivative contracts. According to BSE, the relaunch of derivative products includes a smaller lot size for futures and options, as well as an earlier Friday expiry cycle.
Derivatives are regarded as high-risk, high-reward financial tools used to manage equities market risk. In 2000, BSE introduced the first Sensex-30 derivatives (options and futures). The 30 largest and busiest firms traded on the BSE make up the Sensex-30 derivatives.
“We are relaunching the Sensex and Bankex futures. A well-known benchmark and indicator of the Indian economy is the Sensex. At the relaunch event on Monday, BSE Managing Director and CEO Sundararaman Ramamurthy said, “It has good performance and a good volatility profile. According to BSE, the lot size of futures and options has been decreased for the Sensex from 15 to 10, and for the Bankex from 20 to 15, respectively.