SEBI approves NSE's expiry shift to Tuesday, BSE to Thursday

The Securities and Exchange Board of India (SEBI) on Tuesday approved the National Stock Exchange's (NSE) proposal to shift its weekly equity derivatives expiry from Thursday to Tuesday. In line with the directive that both exchanges cannot have expiries on the same day, SEBI has also mandated the BSE to move its Sensex expiry from Tuesday to Thursday, effective September 1, 2025. Starting July 1, 2025, BSE will stop introducing new weekly index futures contracts.

For existing derivative contracts, BSE will retain the current expiry schedule, except for long-dated index options, where exchanges are expected to realign expiry days as per past practices. New contracts set to expire on or before August 31, 2025, will continue under the current schedule.

This regulatory shift stems from a SEBI circular issued in late May, which directed exchanges to select either Tuesday or Thursday for weekly equity derivatives expiries. The move aims to curb expiry-day volatility and establish uniformity across exchanges.

Previously, exchanges had the autonomy to set expiry days, resulting in a scattered expiry calendar throughout the week. The May directive followed industry consultations and feedback on a discussion paper issued in March 2025. SEBI’s Secondary Market Advisory Committee (SMAC) reviewed the inputs and recommended narrowing expiry options to reduce excessive market activity.

As per the circular, each exchange is allowed to offer one weekly benchmark index options contract on its chosen expiry day. All other contracts—including benchmark index futures, non-benchmark index options, and single stock derivatives—must now have a minimum tenor of one month and expire on the last Tuesday or Thursday of the month, based on the exchange’s selected expiry day.

Earlier this year, via a circular dated March 4, 2025, NSE had proposed shifting the F&O expiries for indices like Nifty, Bank Nifty, FinNifty, Nifty Next50, and Nifty Midcap Select from Thursday to Monday. However, the implementation—initially scheduled for April 4—was subsequently deferred.

Source: Read Full News