NSE and BSE Derivative Expiry Days Finalised by SEBI: All You Need to Know

Market Performance

The landscape of India's derivatives market is undergoing a significant shift. The NSE and BSE have secured final approval from SEBI for their revised expiry dates for derivatives.

This move is set to streamline expiry schedules across Indian exchanges, impacting intraday volatility, trading behavior, and long-term contract alignments.

Main News

• NSE has received SEBI's approval to move its index derivatives expiry to Tuesday, effective for contracts expiring after September 1, 2025.
• BSE has also confirmed that SEBI approved its proposal for Thursday as the official expiry day.
• Contracts expiring on or before August 31, 2025, will retain their current expiry date.
• Long-dated index options will be realigned to the respective exchange's new expiry days.

The regulatory communication has been formally conveyed to both NSE and BSE. This decision comes after months of review by SEBI's Secondary Market Advisory Committee (SMAC).

Company Details

NSE (National Stock Exchange)

• NSE will shift expiry days to Tuesdays starting from September 2025.
• This decision is part of NSE's effort to reclaim market share from BSE.
• The NSE remains the largest derivatives exchange globally by the number of contracts traded.
• The change also aims to enhance intraday trading volumes by shifting expiry closer to the start of the week.

BSE (Bombay Stock Exchange)

• BSE received approval to move its expiry day to Thursday, aligning it with its earlier strategy.
• This is seen as a move further to strengthen its index derivatives segment, especially Sensex-based products.

Revenue

BSE has reported a robust financial performance in FY25, driven by surging derivatives volumes.

• Equities Average Daily Turnover (ADT):
  • FY25: ₹7,766 Crore
  • Previous Year: ₹6,622 Crore
• Index Derivatives - March Quarter:
  • Highest-ever average daily premium turnover: ₹11,782 Crore

The revenue boost was driven by a broader client base and increased activity on non-expiry days, emphasizing BSE's growing traction in the derivatives market.

Summary of the Article

With SEBI's final nod, NSE and BSE will implement new expiry days starting September 2025—Tuesday for NSE and Thursday for BSE. The decision affects only contracts maturing after this date, with current ones remaining unchanged. This shift is seen as part of a broader effort by exchanges to manage volatility, improve liquidity, and enhance trading volumes.