Mumbai, June 17 (IANS) The National Stock Exchange (NSE) on Tuesday announced it has received approval from capital markets regulator SEBI to change the expiry day for equity derivatives contracts from Thursday to Tuesday.
This move is part of a broader effort to streamline expiry days across exchanges and reduce volatility. The new expiry schedule will come into effect from September 1, 2025.
The Bombay Stock Exchange (BSE) has also been given the go-ahead to continue with Thursday as its expiry day from Tuesday.
The exchange had proposed Thursday as its preferred settlement day, and SEBI has accepted the suggestion.
Both exchanges shared official circulars outlining the changes following SEBI’s directive issued in May.
According to the circular issued by NSE, all existing contracts will continue to have Thursday as the expiry day, except for long-dated index options, which may be realigned in line with previous practices.
For new contracts, those expiring on or before August 31, 2025, will also follow the current Thursday expiry.
From September 1, 2025, however, expiry will shift to Tuesday, with monthly contracts expiring on the last Tuesday of each month.
Meanwhile, BSE’s circular mirrors a similar structure. All existing contracts will maintain their current expiry schedule, with long-term index options adjusted where necessary.
New contracts expiring on or before August 31, 2025, will keep the Tuesday expiry. From September 1, 2025, BSE’s expiry day will officially move to Thursday.
The exchange also announced that it will stop introducing fresh weekly index futures contracts starting July 1.
These decisions were taken after detailed discussions in SEBI’s Secondary Market Advisory Committee (SMAC) to bring consistency in expiry days and ensure smooth transitions between the exchanges.
The change is also expected to reduce excessive speculation and help exchanges focus on building sustainable trading patterns.
With this development, NSE aims to regain some market share in derivatives trading, where BSE had made notable progress after launching contracts with a different expiry day.
Derivatives contribute significantly to revenue for both exchanges, and a clear distinction in expiry schedules could play a crucial role in shaping future volumes.
–IANS
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