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Key Points

The National Stock Exchange has received SEBI's approval to shift its weekly derivatives expiry to Tuesday, while BSE will move to Thursday. This strategic change aims to reduce overlap and help NSE regain market share from BSE. SEBI's decision follows discussions on creating uniform guidelines to curb excessive speculative trading. The new expiry cycles will take full effect after September 2025 for BSE's long-dated contracts.

Key Points: NSE Shifts Derivatives Expiry to Tuesday After SEBI Approval

  • NSE shifts derivatives expiry to Tuesday to reclaim market share
  • BSE moves to Thursday expiry for long-dated contracts
  • SEBI aims to reduce speculative trading with uniform guidelines
  • Changes take effect post-September 2025 for BSE contracts
2 min read

NSE gets SEBI's nod to shift derivatives expiry to Tuesday

SEBI approves NSE's move to Tuesday derivatives expiry, while BSE shifts to Thursday, reshaping India's trading landscape.

NSE gets SEBI's nod to shift derivatives expiry to Tuesday
"The change in expiry days is expected to introduce more clarity and reduce overlapping between exchanges. – SEBI Report"

Mumbai, June 17

In a key development for the Indian derivatives market, the National Stock Exchange (NSE) has received approval from capital markets regulator SEBI to shift its weekly derivatives expiry day to Tuesday.

Also, the Bombay Stock Exchange (BSE) has also received SEBI's nod to shift its expiry day to Thursday as per its request.

The communication from the capital markets regulator regarding the expiry day changes has been conveyed to both the exchanges.

These changes are part of a broader discussion held by SEBI's Secondary Market Advisory Committee (SMAC), which was working on creating uniform guidelines for expiry days across different stock exchanges.

According to the report, BSE has said that all existing derivative contracts will retain their current expiry day unless they are long-dated index options, which will be realigned to match the new schedule.

Specifically, BSE’s contracts that are due to expire on or before August 31, 2025 will continue with the current expiry system.

However, contracts expiring after September 1 will move to the new Thursday expiry cycle.

NSE, which currently hosts the highest volume of derivatives trading globally, had reportedly pushed for the shift to Tuesday in a bid to reclaim market share from BSE.

In recent times, BSE has been gaining ground in derivatives trading, prompting NSE to make this strategic change.

Derivatives are a significant source of revenue for both exchanges, and even small shifts in market share can have large financial implications.

The move also comes at a time when SEBI has been encouraging exchanges to reduce excessive and speculative trading in the derivatives market.

The change in expiry days is expected to introduce more clarity and reduce overlapping between exchanges -- helping both NSE and BSE establish distinct trading windows.

- IANS

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Reader Comments

R
Rahul K.
Finally some differentiation between NSE and BSE expiry days! This will help reduce confusion for retail traders like me who sometimes get mixed up between the two exchanges. Though I'll need to adjust my weekly trading calendar now. 🤔
P
Priya M.
As someone who trades on both exchanges, this is a welcome change. The overlapping expiry days often created unnecessary volatility. SEBI is doing good work to streamline our markets. Hope this leads to more stability in derivatives trading.
A
Amit S.
NSE moving to Tuesday expiry seems like a smart competitive move against BSE. But I'm concerned about the transition period - hope brokers and trading platforms update their systems properly. Last thing we need is technical glitches during expiry!
S
Sanjana P.
Good decision by SEBI. This will help reduce excessive speculation as mentioned in the article. Our markets need more such reforms to protect small investors. Though I wonder if this will really impact the big players who dominate derivatives trading.
V
Vikram J.
As a CA working with traders, I see both pros and cons. While it creates differentiation, it also means maintaining separate expiry calendars. Hope SEBI provides clear guidelines on corporate actions and other events that might get affected by this change.
N
Neha T.
Interesting move! Tuesday expiry for NSE might actually work better for me as it gives more time to analyze Monday's market movements. Though I hope they conduct proper awareness campaigns so that retail investors don't get caught off guard. 👍

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