Synopsis: SEBI has approved the NSE's proposal to shift its derivatives expiry day to Tuesday starting September 1, 2025, while BSE will continue with Thursday as its expiry day. The move aims to streamline expiry schedules and stabilize trading behavior across exchanges.
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What’s Changing and Why?
In a regulatory shake-up, the Securities and Exchange Board of India (SEBI) has given the green light for changes in the expiry days of equity derivatives contracts:
NSE Expiry Day:
- Old: Thursday
- New (From Sept 1, 2025): Tuesday
- Reason: Regain derivatives trading volumes, reduce volatility
BSE Expiry Day:
- Old: Tuesday
- New (From Sept 1, 2025): Thursday
- Reason: Maintain distinct expiry day, build sustainable trade flow
These decisions were the outcome of extensive deliberations within SEBI’s Secondary Market Advisory Committee (SMAC). The objective is to avoid overlapping expiry days, promote market efficiency, and reduce excessive speculative movements.
Both exchanges issued circulars confirming the new expiry structure. Contracts expiring on or before August 31, 2025, will follow the current schedule, after which the new expiry dates will apply. Long-term index options may also be realigned accordingly.
Notably, BSE will discontinue fresh weekly index futures contracts starting July 1, 2025, signaling a tighter focus on streamlined instruments.
Market Impact
With derivatives being a major revenue driver for NSE and BSE, these changes are also viewed through a competitive lens. By setting distinct expiry days, each exchange hopes to attract and stabilize trading volumes without cannibalizing liquidity.
Disclaimer: This article is for informational purposes only. Market decisions and trading strategies should be based on official circulars and consultations with certified financial advisors.
