Description

BSE introduces DMM framework for BSE Focused IT Futures and Options contracts from May 11, 2026, and extends Bankex Options market maker support to all three-serial monthly contracts.

Summary

BSE is introducing a Designated Market Maker (DMM) framework for BSE Focused IT Futures and Options contracts effective Monday, May 11, 2026. Additionally, BSE has partially modified the existing market maker framework for BSE Bankex Options contracts (originally announced via notice 20240514-41 dated May 14, 2024) to extend DMM support to all three-serial monthly Bankex Options contracts on all trading days, also effective May 11, 2026.

Key Points

  • DMM framework will be introduced for BSE Focused IT Futures and Options contracts starting May 11, 2026
  • Partial modification to the existing market maker framework for BSE Bankex Options contracts effective May 11, 2026
  • Bankex Options DMM support extended to cover all three-serial monthly contracts on all trading days
  • Applications for market maker registration must be submitted through the BEFS portal on or before May 08, 2026
  • Registration becomes effective from May 11, 2026 onwards
  • Detailed guidelines available in Annexure-1 attached to the notice

Regulatory Changes

  • New DMM framework established for BSE Focused IT Index Futures and Options contracts
  • Amendment to the existing Bankex Options market maker framework (notice 20240514-41) to extend coverage to all three-serial monthly contracts on all trading days, replacing the prior partial coverage

Compliance Requirements

  • Trading members wishing to act as market makers in BSE Focused IT Futures and Options contracts must submit applications via the BEFS portal by May 08, 2026
  • Trading members wishing to act as market makers in BSE Bankex Options contracts must similarly apply via the BEFS portal by May 08, 2026
  • Applicants must review and comply with the detailed DMM guidelines in the attached Annexure-1

Important Dates

  • April 15, 2026: Original notice (20260415-34) announcing BSE Focused IT Futures and Options contracts
  • May 08, 2026: Deadline for submitting market maker applications via BEFS portal
  • May 11, 2026: Effective date for DMM framework on BSE Focused IT contracts and modified Bankex Options DMM framework

Impact Assessment

This circular enhances liquidity infrastructure for two index derivative products on BSE. The DMM framework for BSE Focused IT derivatives is a new initiative aimed at improving market depth and price discovery for this recently introduced index. The extension of Bankex Options DMM support to all three-serial monthly contracts on all trading days improves liquidity continuity across the term structure, benefiting options traders and hedgers. Trading members with existing market-making capabilities in equity derivatives may find new revenue opportunities, while end participants (institutional and retail traders) benefit from tighter spreads and improved liquidity.

Impact Justification

Structural market liquidity enhancement for specific index derivative contracts; affects trading members participating in BSE Focused IT and Bankex segments but has limited broad market impact.