India's BSE will retain weekly derivative contracts linked to the Sensex after the country's markets regulator announced tighter rules for equity derivatives, two sources with direct knowledge of the matter said.

November, BSE will no longer offer weekly index derivatives on Sensex 50 and Bankex, following SEBI’s new framework designed to reduce risk and improve market stability. Key changes include stricter monitoring and higher contract values.

On October 3, the BSE announced the discontinuation of weekly index derivatives contracts on the SENSEX 50 from November 14, and on the BANKEX from November 18. This decision follows recent guidelines from SEBI aimed at strengthening the equity index derivatives framework to improve investor protection and market stability.

India's BSE said it will discontinue weekly derivative contracts linked to Bankex and Sensex 50, indicating the stock exchange operator will retain only contracts linked with its benchmark BSE Sensex,

Sources have told ET NOW that the BSE will retain weekly derivative contracts linked to the Sensex. This follows SEBI's tighter rules for the Futures and Options (F&O) trading.