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    NSE to waive off transaction charges for Junior Nifty F&O trades for 6 months

    Synopsis

    NSE announced no transaction charges for 6 months in F&O contracts of Nifty Next 50 index to boost participation. Sebi approved trading starting April 24, 2024.

    NSE to waive off transaction charges for Junior Nifty F&O trades for 6 monthsGetty Images
    The National Stock Exchange (NSE) today announced that it will not levy any transaction charges for the first 6 months in the F&O contracts of Nifty Next 50 index, also known as Junior Nifty.

    "In order to encourage active participants in Futures and Options contracts on Nifty Next 50 Index, it has been decided that no transaction charges will be levied on the trades done in Futures and Options contracts on Nifty Next 50 Index (NIFTYNXT50) in Future & Options segment from April 24, 2024 (product launch date) till October 31, 2024," NSE said in a statement.

    Last week, the exchange had announced that it had got markets regulator Sebi’s nod to launch trading in futures and options contracts of Nifty Next50 with effect from April 24, 2024.

    Also read | NSE to launch monthly F&O contracts of junior Nifty from next week

    “The introduction of derivatives on the Nifty Next 50 index (NIFTYNXT50) will well complement the existing index derivatives product suite. The Nifty Next 50 index will represent the space between the Nifty 50 index comprising the top large & liquid stocks and the Nifty Midcap Select index comprising the top large & liquid mid-capitalised stocks,” NSE Chief Business Development Officer Sriram Krishnan said.

    Besides the more popular ones Nifty and Nifty Bank, NSE also offers derivatives of Nifty Midcap Select and Nifty Financial Services index.

    The Nifty Next 50 index has a 71% correlation and a Beta value of 0.95 with Nifty50 Index. It has a correlation of 90% with the Nifty Midcap 150 index in FY 2024.

    The Nifty Next 50 Index represents 50 companies from Nifty 100 after excluding the Nifty 50 companies. As of March 2024, the index had top sector representation from the financial services sector with 23.76% weight followed by the capital goods sector with 11.91% and consumer services with 11.57%.

    Also read | Is daily expiry a problem for option traders? BSE CEO Sundararaman Ramamurthy explains


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    (You can now subscribe to our ETMarkets WhatsApp channel)

    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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