BSE soars after SEBI's proposal to limit derivatives expiry days to Tuesdays or Thursdays

BSE surged 15.72% to Rs 5,420.90 after the country's market regulator SEBI announced a proposal to rejig the derivatives expiry schedule in the domestic equity markets.

On Thursday, the Securities and Exchange Board of India (SEBI) published a consultation paper which stated that every stock exchange will be allowed one weekly benchmark index options contract, on their chosen day either Tuesday or Thursday. This has been proposed with the intent to ensure optimal spacing exists between expiry dates.

The National Stock Exchange (NSE) had earlier proposed to shift its expiry to Monday from Thursday, with the change kicking in from April 4. Post the announcement of this proposal from SEBI, NSE's plan to shift its derivatives expiry day to Monday from Thursday has been put on hold. The market regulator has advised exchanges not to tweak the schedule until a new policy kicks in.

This move from SEBI would reportedly secure Tuesday as BSE's expiry day, preventing a potential market share loss had the NSE shifted to Monday as previously proposed, attracting more traders and reduced volumes on BSE.

By keeping the separation, BSE will see steady trading activity, reducing the estimated 12% negative impact on its earnings per share, media reports said.

BSE is India's leading exchange group. It provides an efficient and transparent market for trading in multiple asset classes including, equity, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, SME, startups and debt instruments.

On a consolidated basis, BSE delivered a record quarter, achieving total revenues of Rs 835.4 crore, registering a year-on-year (YoY) growth of 94% for Q3 FY25. Net profit attributable to the shareholders for the quarter ended December 2024, stood at Rs 219.7 crore, a growth of 103% on YoY basis.

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