At a time when the Securities & Exchange Board of India is pushing for longer-tenure contracts to prevent retail investors from making losses, the NSE International Exchange (NSEIX) has announced the launch of a daily expiry on options contracts of the Nifty 50 index at the GIFT city for its international customers from October 13.
How are the 0DTE options contracts structured?
The zero days to expiry (0DTE) options contracts are structured with weekly expiries on each day of the week – Monday through Friday – a press release said on Tuesday. “This feature makes NSEIX the first exchange in India to offer international investors such an instrument, designed to meet the needs of modern trading strategies that demand agility, precision, and cost efficiency.”
Their rapid pace and responsiveness make them attractive to high-frequency trading and quantitative strategy desks, which rely on the agility to capture short-term opportunities, the exchange said. “At the same time, the accessibility and affordability of these contracts open new avenues for retail investors, including NRIs and OCIs, to participate more actively in India’s flagship index through GIFT IFS,” it said.
Are Indian residents allowed to trade these contracts?
Indian residents are not allowed to trade these contracts.
This development comes amid numerous measures taken by the markets regulator to protect retail investors, 90% of which make losses in the derivatives market. For domestic traders, currently there is one weekly expiry on each of the exchanges. Sebi has said it is planning to do away with that and only allow longer-tenure contracts.