The National Stock Exchange (NSE) is hitting pause on its plan to move derivatives contract expiries from Thursdays to Mondays. Why the change of heart? It comes after SEBI (the Securities and Exchange Board of India) stepped in with its own proposal to standardize expiry days across the board.
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Earlier in March, NSE announced it would shift expiry days for key derivatives, like the weekly and monthly NIFTY options, to Mondays starting April 4, 2025, to smooth out trading activity and avoid the typical Thursday market rush.
SEBI Steps In
But on March 27, SEBI released a consultation paper suggesting a different approach. Instead of giving each exchange free rein, SEBI wants all equity derivatives to expire only on Tuesdays or Thursdays. Their reasoning was pretty straightforward: keep things predictable, spread out the risk, and avoid overloading specific days. Plus, SEBI added a new rule that exchanges will now need prior approval before tweaking expiry or settlement days.
NSE’s New Stance
So, what is the NSE doing now? They’re backing off of the Monday move, at least for now. The exchange is choosing to align with SEBI’s guidance while things get sorted. It’s a clear sign they’re prioritizing coordination with regulators and aiming for market stability.
“Members are required to note that the implementation of this circular (shift of expiry to Monday) is deferred until further notice in view of SEBI consultation paper dated March 27, 2025 on Final Settlement Day for Equity Derivatives,” the NSE said in a new circular.
How Did the Market React?
The reaction was fast and dramatic. Bombay Stock Exchange (BSE) shares jumped nearly 16% right after NSE’s announcement. Analysts say this is because the original plan could have pulled trading volumes away from BSE. Research firm Jefferies even noted that staying with the current expiry schedule avoids what could’ve been a 12% hit to BSE’s earnings per share.
“We will not run behind derivative market share. However, there should be a spread between 2 expiries,” BSE CEO Sundararaman Ramamurthy said in a conversation with CNBC-TV18 earlier this week.
“Whatever was the SEBI’s perspective of reducing daily expiry, I don’t think is going to be met if we continue to have multiple expiries on different days. So, for me, if you want to really remove that, you need to have one single day, whichever way,” NSE CEO Ashishkumar Chauhan had said on March 10 to news sources.
What This Means for You
If you’re a trader or investor, this update means no need to scramble or adjust strategies just yet. The expiry days are staying the same for now, and SEBI’s standardization plans could actually make things more predictable down the line.
Looking Ahead
This whole situation highlights one big thing: regulatory harmony matters. As SEBI continues to gather feedback (the comment window’s open until April 17), market watchers will be paying close attention. The final decision could shape how India’s derivatives market operates for years to come.
