The Securities and Exchange Board of India (SEBI) has issued a circular on May 26, 2025, directing all recognized stock exchanges to adopt a uniform expiry day for equity derivatives contracts — either Tuesday or Thursday.
The circular, titled “Final Settlement Day (Expiry Day) for Equity Derivatives Contracts”, aims to strike a balance between product differentiation and avoiding market instability caused by expiry day hyperactivity.
Key changes outlined by SEBI:
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Weekly expiries of all equity derivatives contracts must now be limited to either Tuesday or Thursday, depending on the exchange’s existing framework.
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Exchanges can continue to offer one weekly benchmark index options contract on their chosen day.
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All other equity derivative instruments — including index futures, non-benchmark index options/futures, and single stock options/futures — will now require a minimum tenor of 1 month, expiring on the last Tuesday or Thursday of the month.
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Exchanges seeking to change their existing expiry day must now obtain prior SEBI approval.
To implement the circular, stock exchanges are required to submit their proposal to SEBI by June 15, 2025, and initiate necessary amendments to their rules and bye-laws.
This directive follows feedback from SEBI’s public consultation in March and discussions within its Secondary Market Advisory Committee (SMAC).
Disclaimer: The information provided is for informational purposes only and should not be considered legal or investment advice. Please refer to the official SEBI circular for detailed regulatory guidance.
