The secondary markets advisory committee of the SEBI, which met on Friday, has recommended the introduction of fortnightly futures contracts on the stock exchanges, it is learnt.
Now, the NSE has monthly contracts that are settled on the last Thursday of every month. The BSE F&O segment has Weekly Options on Sensex and on Reliance Industries, Mahindra Satyam, SBI and Tata Steel.
The committee also discussed the possibility of allowing pre-market trading in stocks.
Pre-market trading, a practice followed in some jurisdictions, allows for trading before the traditional stock exchange hours. This could be introduced in specific stocks on the basis of “call auction” patterns, which are internationally accepted, subject to minimum volumes and liquidity, said sources. Usually only trades with limit orders are entertained in pre-market trading.
Pre-market trading will facilitate the testing of waters in the case of relisting of companies, illiquid scrips or even IPO listing, said sources at SEBI.