Exchanges to choose between Tuesday and Thursday for derivatives expiry

Sebi proposes to limit expiry on two days a week

The Securities and Exchange Board of India (SEBI) has put forth a proposal to limit equity derivatives expiries to either Tuesdays or Thursdays for each exchange.  Effectively, exchanges will have to opt for either of these two days.

  

Currently, the BSE and National Stock Exchange (NSE) use Tuesday and Thursday, respectively, as expiry days for single stock and index derivatives contracts, a practice formalised in January 2025.

 

NSE recently proposed shifting its final settlement day to Monday, prompting SEBI to step in and formalise the framework. Given SEBI's latest proposal, the exchange may have to withdraw the plan.

 

The move to standardise the expiry days of equity derivatives contracts across stock exchanges is aimed at balancing market stability, investor protection, and innovation.

 

The move comes amid a surge in derivatives trading volumes, particularly in index options on expiry days, which has raised concerns over concentration risk and market integrity.

 

All other equity derivatives—including benchmark index futures, non-benchmark index futures/options, and single stock futures/options—will have a minimum tenure of one month, with expiries set for the last Tuesday or Thursday of each month.

 

Exchanges will now require SEBI’s prior approval to launch or modify any contract expiry or settlement day. 

Sebi cancels registration of 72 research analysts 

The Securities and Exchange Board of India (Sebi) has cancelled the registration of 72 research analysts (RAs) who were either inactive, had not paid renewal fee or did not wish to renew the licence.  A few research analysts submitted to Sebi that they had secured new registrations while around 49 of the RAs did not reply to the show-cause notice sent by the regulator.  Sebi said that the main motive behind the cancellation was to prevent misuse of their expired certificate of registration on unaware investors. It further added that these RAs will continue to be liable for anything done or omitted to be done as RAs irrespective of cancellation.