Sensex Options Gain Non-Expiry Traction After Sebi Curbs

A regulator studied how people traded options before and after new trading rules.

The rules made some contracts larger, reduced the number of weekly expiry days, and increased a risk-related margin on expiry days.

After the changes, Sensex options were traded much more often on days that were not expiry days.

Their non-expiry trading value rose sharply, although it started from a small amount.

Experts say more foreign institutions may be holding positions for several days.

Some trading volume also appears to have moved from weekly contracts that were discontinued or restricted.

Retail traders, by contrast, have often concentrated their activity on expiry days.

The Bombay Stock Exchange’s expiry-day trading remained larger, but the gap between expiry and non-expiry activity became much smaller.