India's BSE will retain weekly derivative contracts linked to the Sensex after the country's markets regulator announced tighter rules for equity derivatives, two sources with direct knowledge of the matter said.

SEBI on Tuesday asked exchanges to cut down the number of weekly options contracts available to investors to only one from November 20

The new rules followed a spurt in retail investors trading options, which the regulator and the government viewed as a risk to household finances

India's BSE will keep weekly derivative contracts for the Sensex. SEBI has tightened rules, allowing only one weekly options contract from Nov. 20. This follows a rise in retail investors trading options and concerns over household finances.