Will NSE Secure SEBI’s Approval to Change Derivatives Expiry to Tuesday?
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Synopsis
In a pivotal shift for India's derivatives market, NSE has potentially gained SEBI's approval to move its derivatives expiry to Tuesday. This strategic change aims to enhance clarity and minimize overlap, as BSE also adjusts its expiry to Thursday. Read on to explore the implications of this decision.
Key Takeaways
- NSE is shifting derivatives expiry to Tuesday.
- BSE will move its expiry to Thursday.
- Existing contracts will maintain current expiry dates until September 1.
- This change aims to enhance clarity in the derivatives market.
- SEBI is promoting uniform guidelines across exchanges.
Mumbai, June 17 (NationPress) In a significant move for the Indian derivatives market, the National Stock Exchange (NSE) has reportedly secured approval from the capital markets regulator SEBI to change its weekly derivatives expiry day to Tuesday.
Additionally, the Bombay Stock Exchange (BSE) has also received SEBI's endorsement to shift its expiry day to Thursday, following its request, as per various reports.
The capital markets regulator has communicated the changes in expiry days to both exchanges.
However, both exchanges have yet to release official statements regarding this development.
These adjustments are part of comprehensive discussions by SEBI's Secondary Market Advisory Committee (SMAC), which is working towards establishing uniform guidelines for expiry days across various stock exchanges.
According to the report, BSE has indicated that all existing derivative contracts will maintain their current expiry day unless they are long-dated index options, which will be realigned according to the new schedule.
Specifically, BSE’s contracts set to expire on or before August 31, 2025 will continue with the existing expiry system.
Contracts expiring after September 1 will transition to the new Thursday expiry cycle.
The NSE, which currently boasts the highest global volume in derivatives trading, has reportedly advocated for the shift to Tuesday in an effort to regain market share from BSE.
Recently, BSE has been increasing its presence in derivatives trading, prompting NSE to implement this strategic adjustment.
Derivatives serve as a crucial revenue source for both exchanges, and even minor fluctuations in market share can lead to substantial financial consequences.
This shift coincides with SEBI's encouragement for exchanges to minimize excessive and speculative trading within the derivatives market.
The alteration in expiry days is anticipated to provide greater clarity and diminish overlap between exchanges, thereby assisting both NSE and BSE in establishing clear trading windows.
Point of View
This shift in expiry days represents a critical evolution in the competitive landscape of India's derivatives market. As both NSE and BSE navigate these changes, it is crucial that they prioritize transparency and fair trading practices to foster trust among investors and stakeholders.
NationPress
17/06/2025
Frequently Asked Questions
What is the new expiry day for NSE derivatives?
The new expiry day for NSE derivatives is likely to be Tuesday, following SEBI's approval.
When will BSE shift its expiry day?
BSE is set to shift its expiry day to Thursday as per SEBI's endorsement.
How will existing contracts be affected?
Existing contracts will retain their current expiry day unless they are long-dated index options, which will be adjusted accordingly.
Why is this change happening now?
This change is part of SEBI's broader efforts to create uniform guidelines for expiry days across stock exchanges and to reduce speculative trading.
What are the expected benefits of this change?
The change is expected to enhance clarity and minimize overlap between exchanges, helping both NSE and BSE to establish distinct trading windows.
