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.