The National Stock Exchange of India said on Thursday it will retain weekly derivative contracts linked to the benchmark Nifty 50 index, after the country's markets regulator announced tighter rules for equity derivatives.

The National Stock Exchange (NSE) has opted for the Nifty 50 index for issuing weekly option contracts following Sebi's one-exchange-one-benchmark mandate. This comes even as the Nifty Bank index clocked a higher notional turnover.

The NSE will retain the Nifty weekly options contract while discontinuing Nifty Bank, Nifty Midcap Select, and Nifty Financial Services options due to new Sebi guidelines. Similarly, the BSE will stop weekly contracts for Sensex 50 and Bankex,

This decision by NSE has been taken to comply with the new rules issued by the Securities and Exchange Board of India (SEBI) earlier this month for trading in futures and options (F&O).

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National Stock Exchange (NSE) has retained Nifty weekly options contract while letting go Nifty Bank, Nifty Midcap Select and Nifty Financial Services, in line with the Sebi circular which mandates exchanges to provide derivatives contracts for only one of its benchmark index with weekly expiry,