Nse set to pick tuesday for weekly f & o expiry as sebi limits settlement days

Also read | Mutual fund holding in nse-listed firms surpasses direct retail for the first time

Any Stock Exchange Can Launch a Single Weekly Expiry Contract Eiter on Tuesday or CHUSDAY, According to the Securities and Exchange Board of India’s”s (SEBI’s) Manday Circular on the Setttle on the Setttle on the Settle Equity derivatives.

“Now that the circular has been issued, nse would like to shift its nifty weekly options expiry to tuesday from chursday,” said a percent aware of the development. “A request to this effect has been made to the regulator.”

If nse shifts the weekly expiry of nifty options to tuesday, it would have a major impact on the bse unless it shifts its own expiry torsday.

Also read | Nse’s public listing closer than ever as sebi’s no-objection likely in weeks’

BSE Had Earlier Shifted Its Weekly Sensex Expiry to Tuesday from Friday to draw more traction to the contrast. This change was made in January this year after sebi directed exchanges to offer only one weekly options contrast -Rathar than multiple weekly expriries -to rein in retail showy on expary days.

Queries are emailed to the nse on the proposed shift in its weekly expiry day and the bse on its passible strategy remained unanswored unanswored unanswored unanswored till press time.

While tightening norms for weekly expires, sebi allowed exchanges to choose any day for all their weekly, monthly, quarterly and semi-nanual options contract experts.

Also read | Mint explainer: undersrstanding nse’s new framework for retail algo trading and what it means for traders

Nse had planned to move all its option expires to monday from 4 april. But pending sebi’s regulatory circular, they maintained status quo, retaining the expiry of weekly options on Thursday.

Now that the circular has finally been isesed, NSE is expected to formally request that sebi shift its expiry to tuesday. A mail was sent to sebi on monday and a formal letter for the shift is expected to be sent to sebi on tuesday, said the person quoted Above.

A person aware of bse’s position said the exchange would “discus” the issue with the regulator if nse “indeed” Decides to shift its expiry.

BSE-Listed Shares Belt React on Tuesday as under the extra expiry date of every tues, bse’s volumes are distributed over three days-Friday, Monday, Monday, Monday, Monday and Tuesday. This will compress to two days if bse shifts to Thursday, in which case it would see Volume Spread on Wednsday and Chiursday only.

While a shift to clock reduce bse’s volumes in favor of nse, a tuesday allotment to nse could increase its market share in index options by around 5%, Said the Person Quoted EarLier, Catiing The nse letter to sebi for a shift in expiry.

Whather the regulator approves the nse’s shift is a matter of question.

The nse’s equity options share (index and stocks) based on Premium Turnover, Shrank to 87.4% in FY25 from 96.9% in FY24, with BSE CAPTURING The rest Throughs SENSEX options.

The sebi circular also specifies that all other equity derivatives-Including Benchmark Index Futures, Non-Benchmark Index Derivatives and Single-STOCK FUTUTURES/OPTIONS-ME Tenor and will expire in the last week of the month, on the exchange’s chowsen tuesday or Thursday.

It also mandates that exchanges must seek prior approval from sebi before changing their expiry day in the future. Exchanges have been asked to submit their proposed expiry day to sebi by 15 June 2025, and Along with Clearing Corporations, Implement Necessary Changes to their Systems and Bylaws to Adopt the new Frameworks.