NSE F&O expiry on Tuesday...

SHRIRAM KRISHNAN, CHIEF business development officer at NSE told a TV channel, "In the overall interest of the ecosystem, we had sought feedback, and it was in favour of Monday expiry, but Sebi requested us to keep that on hold. So, Tuesday was the next best option." He added that in terms of market share, the increase will be significant. "In the last many weeks our expiry day has 90-95% market share of total premium, even one and two days before we see similar market share," he said.

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Rajesh Palviya, head of technicals and derivatives at Axis Securities explained that a Tuesday expiry for NSE will benefit the exchange as investors will now have three working days to make decisions. Theta decay, or time decay over the weekend will also be less, according to him and many traders including hedge funds prefer NSE due to better products, more liquidity and algos available on Nifty.

According to the regulator, in the multi-exchange framework, spacing out of expiry days through the week reduces concentration risk and provides an opportunity for stock exchanges to offer product differentiation to market participants.