Rapid Fire
Nifty Next 50 index
- 22 Apr 2024
- 2 min read
The National Stock Exchange (NSE) has announced the introduction of derivative contracts on the Nifty Next 50 index, set to commence from 24th April 2024.
- The Nifty Next 50 Index represents 50 companies from Nifty 100, excluding the Nifty 50 companies.
- NSE has received approval from the Securities and Exchange Board of India (SEBI) for these derivative contracts.
- The exchange will provide three serial monthly index futures and index options contract cycles.
- Contracts will be cash-settled and expire on the last Friday of the expiry month.
- Derivatives in the market refer to financial contracts between two or more parties and derive their value from an underlying asset or benchmark.
- There are two main types of derivatives:
- Futures, which involve a binding agreement to buy or sell the underlying security on a future date.
- Options, which give the holder the right (but not the obligation) to buy or sell the underlying asset at a predetermined price within a specified period.
- There are two main types of derivatives:
- The NSE is one of the two main stock exchanges in India, with the other being the Bombay Stock Exchange (BSE). It was the first exchange in India to provide modern, fully automated electronic trading.
- NSE emerged as the world's largest derivatives exchange in 2023, in terms of the number of contracts traded, according to the Futures Industry Association (FIA).
Read more: Stock Market Regulation
