NSE to discontinue trading in Nifty IT index derivatives

Mumbai: The National Stock Exchange (NSE) said on Thursday that it is discontinuing derivatives contracts in the Nifty IT index based on a review carried out from October to March.

The weekly and monthly derivatives contracts in the Nifty IT index will be discontinued from June 4 and June 25 respectively.

“As per the SEBI framework for continued eligibility of Index derivatives, the available index derivatives are reviewed semi-annually at the underlying level as per the prescribed criteria. If any index derivatives fail to satisfy any of the prescribed criteria, then no fresh contracts shall be issued on that index,” NSE said in a circular.

It said that the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contracts.

“Based on the review carried out for the period October 2019 to March 2020, members are hereby advised to note that trading in derivative contracts on the following index (Nifty IT index) shall be discontinued,” it added.