Originally planned to start on Tuesday, April 4, the NSE has delayed the implementation of the futures and options (F&O) expiry, which was supposed to start on Monday. The Securities and Exchange Board of India (Sebi) recommended in a consultation paper that all equity derivatives contracts on an exchange should only expire on Tuesdays or Thursdays. This declaration was made late Thursday.
In order to avoid choosing the first or final day of the week as an expiration date, the goal is to maintain optimal periods between distinct expiries on different exchanges.
As per the NSE circular, “Members must take note that the implementation of this circular has been postponed until further notice due to the SEBI consultation paper on ‘Final Settlement Day (Expiry Day) for Equity Derivatives’ dated March 27, 2025.”
The recommendation from the markets’ regulator comes after the NSE decided to move the expiration dates of F&O contracts on the Nifty, Bank Nifty, FinNifty, Nifty Next50, and Nifty Midcap Select from Thursday to Monday. On March 4, the NSE issued a circular announcing these changes.
Additionally, according to the consultation paper published on Thursday, each exchange will continue to be allowed to offer one weekly benchmark index options contract on the day of their choice, which may be either Tuesday or Thursday. All other equity derivative contracts, including benchmark index futures, non-benchmark index futures and options, and single stock futures and options, will be available with a minimum duration of one month, in addition to benchmarking index options. They will expire on the last week of each month on the day of their choice.
Additionally, the bourses will need to obtain prior approval from SEBI before initiating or altering any contract expiration or settlement date. April 17, 2025 is the deadline for submitting the public feedback.
Regarding the expiration dates of stock derivatives contracts across exchanges, SEBI wants market players to have stability and predictability. In order to reduce concentration risk, promote product innovation and risk management, and safeguard investors while preserving market stability, it seeks to appropriately space expiration dates.
