NSE expiry Tuesday, BSE Thursday

Exchanges get Sebi nod, a move that could alter market-share dynamics

- KHUSHBOO TIWARI

In a move that could have implications for market-share dynamics, the Securities and Exchange Board of India (Sebi) has permitted the National Stock Exchange (NSE) and the BSE to alter the days for settlement of equity derivatives contracts.

Derivatives contracts on the NSE will now expire on Tuesdays, moving from the current Thursday expiry. Conversely, BSE contracts will expire on Thursdays, shifting from Tuesday now.

In May, the market regulator issued a circular restricting expiries to just two days a week and asked each exchange to select one. The current expiry days will remain in effect until August 31. Starting in September, both exchanges will transition to their newly designated days.

The expiry day for already introduced contracts will remain unchanged, except for long-dated index options contracts, which will be realigned. Moreover, Sebi has directed the exchanges not to introduce any new weekly contracts on index futures from July 1. Prior to Sebi's decision to limit expiry days, exchanges had the flexibility to change their final settlement days for derivatives contracts, leading to frequent shifts over the past year.