Options contracts are financial derivatives
that give the holder the right, but not the
obligation, to buy or sell an underlying
asset at a specified price (known as the strike
price) within a certain period or on a specific
date. They are widely used in financial markets
for hedging, speculation, and income generation. Before November 20, 2024, the NSE and BSE offered
options contracts with daily expirations, allowing
traders to trade options with very short
durations. However, SEBI's new regulations, effective
from November 2024, limit each exchange to offering
weekly expiry contracts on only one benchmark
index, leading to the discontinuation of weekly
expiries for indices like Bank Nifty, Nifty Financial
Services, and SENSEX 50.