In a move to boost liquidity and encourage participation in Futures and Options (F&O) contracts on the Nifty Next 50 Index, the National Stock Exchange of India (NSE) has announced that it will not impose transaction charges on these contracts until October 31, 2024. The decision comes after the NSE received approval from the Securities and Exchange Board of India (SEBI) to introduce trading in F&O contracts on the Nifty Next 50 Index, which is set to launch on April 24, 2024.
The Nifty Next 50 Index comprises 50 companies from the Nifty 100 after removing the Nifty 50 firms. The exchange will provide three consecutive monthly index futures and index options contract cycles under the terms of the derivative contract. The final Friday of the expiry month will mark the expiration of the cash-settled derivatives contracts.
As of March 29, 2024, the market capitalization of the index constituents stands at 70 trillion, representing about 18% of the total market capital of the stocks listed on the NSE. The aggregate daily average turnover of the index constituents stood at 9,560 crores, accounting for around 12% of the cash market turnover in FY24.
