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Securities and Exchange Board of India i.e. SEBI has announced a change in the weekly expiry of all F&O contracts of BSE and NSE. Now expiry on BSE will take place on Thursday and NSE on Tuesday. Apart from this, SEBI has also set a single day for all derivatives expiry.
Actually, NSE recommended SEBI to do a weekly expiry on Tuesday. SEBI has taken this decision after recommending the NSE. Currently, the weekly expiry of all NSE F&O contracts is on Thursday and all F&O contracts of BSE are on Tuesday.
What did the Chief Business Officer of NSE say?
NSE Chief Business Officer Shriram Krishnan said, ‘If you look up in reverse and say that the expiry of NSE is now fixed on Tuesday, then it is a very positive for us. This was the demand of market Ecosim. We had already received positive feedback in this direction.
We never changed our expiry day, while we had a chance. When the second exchange shifted from Friday to Tuesday. At that time we did not make any changes. We had previously considered Monday, but in view of the counseling cards and later developments, we chose on Tuesday, which was a balanced suggestion and now it has been approved.
SEBI process was going on since March
This decision has been taken after the consultation process that started in March 2025. Its aim was to organize expiry schedule and reduce market fluctuations.
According to the report, SEBI had suggested that the expiry of all equity derivatis contracts should be either on Tuesday or Thursday, so that the extent of different days can be curbed by excessive speculative trading.
What is expiry?
The expiry is called the date in the stock market when the validity of a derivative contracts (such as the option or futures-F&O) ends. By that day, traders either have to sell that contract, or settle it.
On the day of expiry, the prices of these contracts are seen to be strong ups and downs, as many investors close their positions or rollover. This expiry occurs every week on the scheduled day (eg Tuesday or Thursday) in weekly derivatis such as index ice.
What is Futures and Options?
Futures and Options (F&O) are a type of financial instrument that allows investors to take large positions in less capital in stock, commodity, currency. Futures and options are a type of derivative contracts that have a fixed period. Within this time limit, their prices are changes according to the price of stock. The futures and options of each share are available in a lot size.
Sensex closed down 213 points on 17 June
The second business day of the week i.e. Tuesday, June 17, the Sensex fell nearly 213 points to close at 81,583. The Nifty also declined by 93 points, it closed at 24,853 levels.
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