The National Stock Exchange (NSE) has received the Securities and Exchange Board of India (SEBI) approval to shift its weekly futures and options (F&O) expiry to Tuesday. On the other hand, the Bombay Stock Exchange (BSE) will change its expiry day to Thursday, effective September 1, 2025.
SEBI’s May Circular and Guidelines
As per SEBI circular SEBI/HO/MRD/TPD-1/P/CIR/2025/76 dated May 26, 2025, all equity derivative contracts must expire either on a Tuesday or Thursday. Each stock exchange was given the option to choose one day for expiry and was required to obtain SEBI’s approval for any change.
SEBI evaluated the submissions and agreed to BSE’s proposal to shift the expiry day to Thursday. The regulatory body outlined detailed guidelines to ensure a smooth transition, including:
1. Existing Contracts:
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The expiry day for currently active contracts will remain unchanged.
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For long-dated index options, exchanges are allowed to realign the expiry date as per past practices.
2. New Contracts:
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Contracts expiring on or before August 31, 2025, will continue with the existing expiry schedule.
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Contracts expiring on or after September 1, 2025, will follow the new Thursday expiry.
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Monthly contracts will expire on the last Thursday of the month, effective September 2025.
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No new weekly index futures contracts are to be introduced from July 1, 2025.
Impact on BSE
Jefferies has maintained a ‘Hold’ rating yesterday on BSE Ltd, while revising the target price upward to ₹2,900, citing strong earnings potential despite near-term regulatory shifts. According to the brokerage, BSE management does not anticipate major volume disruption due to the expiry change and continues to focus on attracting clients trading in longer-duration derivatives.
Jefferies also sees the transition to a common contract note and the launch of new derivative products as positive moves to improve liquidity and market share. The firm projects a 30% CAGR in net profit from FY25 to FY28, driven by derivatives growth and rising data services revenue.
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