Being comprised of twelve banks, both state-owned and private, the Bank Nifty is an index bank that tracks the banking sector gauging the capital performance in India. Being regulated by Sebi, it was incorporated in 1991 with a base point of one thousand. The name Bank nifty is normally interchanged to Nifty bank or Bank nifty.

As an index bank,  bank Nifty is represented in a way that no single bank has more than a weight of thirty-four percent on the index. Its index represents the segment of a financial market by tracking a group of diversified but represented constituent securities from the market. Some Important facts you need to know about the Nifty bank include;

  • The Regulator
  • The Expiry of Nifty Bank derivative instruments
  • The lot size of the bank
  • The contract and option chain

The regulator

Bank Nifty is regulated by SEBI– The securities exchange board of India, a statutory body established by the government of India to regulate the securities market and protect the interests of the investors. The primary objective is to safeguard all the parties involved in trading, whether investors or locals. It does this by checking price manipulation, fraudulent trade practices, promoting a fair code of conduct, and many more. This assures our clients that they will have safe trading. Its main objectives include safeguarding the rights of investors, monitor stocks exchange activities, and maintaining a balance between parties.

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Expiry Of The Nifty Bank Derivative Instruments

NSE launched a weekly renewal of Future and Options contracts due to the increased need for the contracts. Normally, the expiry of the contracts varies with the type of contracts, there are those that expire on a monthly basis and on a weekly basis. All the underlying assets have to be delivered in physical at the end of the expiry of the contracts

The Lot Size Of Bank Nifty

The future and Options contracts put all together for trading are what is referred to as lot size. The total number of contracts being bought in a trade is well calculated by the derivatives, for bank Nifty, the total lot for contracts grouped together totals up to twenty.  There are two major factors that determine the lot size is the security being traded. One of these factors is the price, the higher the price the higher the lot so does it apply to the other factor which is volume.