NSE receives SEBI nod for Tuesday expiry, BSE Thursday

NSE has received approval from the market reguator SEBI to shift its equity derivatives contract expiries to Tuesdays from Thursdays. Peer Bombay Stock Exchange has also confirmed that it has been assigned Thursday expiry, as sought by the exchange, against Tuesday at present. The Metropolitan Stock Exchange, on the other hand, is said to have received nod for Tuesday as its expiry, whenever it decides to launch its derivative expiry contracts.

In a circular, NSE said SEBI has agreed to the expiry day proposed by NSE i.e. Tuesday. NSE said it would keep the expiry day of derivatives contracts unchanged for already introduced contracts - with the exception of long dated index options contracts for which equity exchanges would suitably realign expiry day. NSE said it would continue with present expiry day (Thursday) for derivative contracts which expire on or before August 31, 2025, but will change the expiry day of the derivatives contracts which expire on or after September 01, 2025 to Tuesday.

From September 01, 2025, the monthly contracts would expire on the last Tuesday of the month, it said.

Similarly, BSE informed that SEBI has agreed to the expiry day proposed by BSE i.e. Tuesday. As there would be a change in the expiry day of derivatives contracts from the present (Thursday), a few additional points need to be adhered to for smooth transition, it said.

BSE said it will keep the expiry day of derivatives contracts unchanged for already introduced contracts - with the exception of long dated index options contracts for which the stock exchanges to suitably realign expiry day as per the practice followed in past.

The stock exchange said it would continue with present expiry day for derivative contracts which expire on or before August 31, 2025. It would change the expiry day of the derivatives contracts which expire on or after September 01, 2025 to Thursday. Further, from September 01, 2025, the monthly contracts would expire on the last Thursday of the month.

BSE said it would not introduce any fresh weekly contracts on index futures from July 01, 2025.

To recall, SEBI had last month said stock exchanges would have to pick only one weekly benchmark index options contracts, which can be either Tuesday or Thursday. The move was aimed at reducing the concentration risk and help stock exchanges to go with product differentiation. NSE has reportedly sought SEBI's approval for Tuesday expiry.

The decision to limit expiry to specific days was seen helping in reducing the clutter between multiple exchanges, boost product innovation, and create a robust risk management framework for the investors. 

Exchanges needed approval from SEBI before making any changes to expiry days. It will help in creating predictability in the market and reduce constant re-shuffling of expiry days, thereby giving a clear picture to the investors, stock anlaysts had said.

The fresh decision stems from a consultation process launched in March 2025 to streamline expiry schedules and reduce market volatility.

Data showed the number of customers active in the F&O segment has declined from 5.3m to 3.1m in March 2025. A major part of the decline can be attributed to the implementation of F&O regulations wherein the number of weekly expiries was reduced to one per exchange and the lot sizes of Sensex and Nifty were increased, MOFSL said in a May note.