New SEBI regulations limiting weekly expiries to one index on BSE level the playing field with NSE, potentially increasing BSE's trading volumes and profitability by attracting new participants to its derivatives market.
"According to SEBI's new regulations, BSE is now permitted to have weekly expiry on only one index. Previously, multiple indices, such as Nifty and BankEx, had weekly expiries, which was creating confusion and liquidity issues for traders. This has brought the competition between NSC and BSE to a level playing field, as both will now have to manage the same expiry date. Previously, NSC's multiple weekly expiries attracted higher volumes, but now BSE will enjoy a similar advantage. This could be beneficial for BSE's growth prospects, as new participants and traders will join the BSE. BSE can take interest in the derivatives market, which can increase its volumes and profitability."
