The Securities and Exchange Board of India (SEBI) has announced new rules for the expiry days of equity derivatives contracts on stock exchanges. This decision aims to reduce confusion and improve market efficiency.
One Weekly Benchmark Index Options Contract per Exchange
According to SEBI’s recent circular, each stock exchange will be allowed to offer only one weekly benchmark index options contract. This contract can expire either on a Tuesday or a Thursday every week.
Currently, the National Stock Exchange (NSE) has weekly expiry on Thursdays, while the Bombay Stock Exchange (BSE) holds expiry on Tuesdays. Exchanges must now choose one expiry day for their weekly benchmark index options contract.
Monthly Expiry for Other Equity Derivatives
All other equity derivative contracts—such as single stock futures and options, non-benchmark index derivatives, and benchmark index futures—must have a minimum duration of one month. These contracts will expire only in the last week of each month on the exchange’s chosen weekday (either Tuesday or Thursday).
Exchanges Must Seek Approval for Expiry Schedules
SEBI requires all stock exchanges to get fresh approval for their expiry schedules from the regulator. Exchanges must submit their proposals by June 15, 2025. Any future changes to expiry days will also need SEBI’s prior approval.
Reason Behind the New Rules
This decision follows SEBI’s consultation paper released on March 27, 2025. The goal is to reduce expiry day overlaps across exchanges and create a more efficient trading environment for investors and traders.
What Exchanges Need to Do
Stock exchanges and clearing corporations must update their rules and trading systems to comply with these new expiry guidelines.
Summary: SEBI has fixed expiry days for equity derivatives contracts to either Tuesday or Thursday. Each exchange can have only one weekly benchmark index options contract, while all other derivatives must expire monthly in the last week. Exchanges must get SEBI approval for their chosen expiry schedules by June 15, 2025.
Update
NSE Plans to Change Expiry Date to Tuesday to Regain Market Share
National Stock Exchange (NSE) of India may soon apply to shift the expiry date for all its weekly and monthly derivatives contracts from Thursday to Tuesday, possibly as early as this Tuesday, according to Bloomberg. Currently, BSE already uses Tuesday for its contract expiries, while NSE sticks to Thursdays. This move is seen as an attempt by NSE — the world’s largest derivatives exchange — to compete more directly with BSE and win back market share after SEBI introduced rules last year to limit excessive speculation, which had led to a drop in NSE’s dominance.
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