Sebi nod for Tuesday, Thursday expiry of derivatives contracts on NSE, BSE

The National Stock Exchange (NSE) has received Sebi's approval to shift its expiry day to Tuesday for equity derivatives contracts, while the BSE has been assigned Thursday as its expiry day, the exchanges announced.

 

This marks a swap from the current schedule, where NSE conducts F&O (Futures & Options) expiry on Thursdays and BSE on Tuesdays.

 

In separate circulars, the bourses said," Sebi has agreed to the expiry day proposed by NSE i.e. Tuesday...Sebi has agreed to the expiry day proposed by BSE (i.e. Thursday)".

 

The new schedule will apply to all new equity derivatives contracts that expire on or after September 1, 2025.

 

Moreover, contracts expiring before this date will continue to follow the existing expiry schedule.

 

The exchanges said they would keep the expiry day of derivatives contracts unchanged for already introduced contracts - with the exception of long dated index options contracts for which equity exchanges would suitably realign expiry day.

 

To support a smooth transition, the exchanges are expected to issue detailed circulars soon, outlining the operational guidelines and implementation process. 

 

The move came after the Securities and Exchange Board of India (Sebi) in May stated that expiries of all equity derivatives contracts across exchanges will be uniformly limited to Tuesdays or Thursdays.

 

This is aimed at optimising the spacing between expiries and avoid designating, either the first or last day of the week as the expiry day.

 

Additionally, Sebi stated that exchanges will seek its approval before launching or modifying any contract expiry or settlement day.

 

Earlier in March, Sebi came out with a consultation proposing that the expiries of all equity derivatives contracts across exchanges be uniformly limited to either Tuesdays or Thursdays.

 

Following the consultation paper, the NSE deferred its plan to change the expiry day of all index and stock derivatives to Monday from Thursday until further notice.

 

The shift, which was scheduled to take effect on April 4, 2025, would have seen all index and stock derivative contracts move from Thursday to Monday.