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BSE F&O Expiry Shifts To Thursday From Tuesday
- BSE announced that the expiry day for its futures and options contracts will shift from Tuesday to Thursday.
- SEBI agreed to the proposed Thursday expiry day by BSE.
- For existing contracts, the expiry day of derivatives contracts will remain unchanged except for long-dated index options contracts.
- New contracts with expiry dates on or before Aug. 31, 2025, will continue with the present expiry day.
- In May, SEBI introduced new regulations mandating equity derivatives contracts to expire exclusively on Tuesdays or Thursdays.
- Stock exchanges were allowed to select one of these days for the weekly expiry of their benchmark index options contracts with prior approval from SEBI.
- SEBI sought preference on the choice of expiry day from stock exchanges and discussed feedback with the Secondary Market Advisory Committee.
- The move follows a consultation paper floated by SEBI in March.
- The change aims to align with the new regulations set by SEBI for equity derivatives contracts.
- The BSE circular indicated the realignment of the expiry date for long-dated index options contracts following past practices.
- The shift in expiry days is part of the regulatory changes in the derivative segment of the Indian stock market.
- The BSE's decision aligns with SEBI's guidelines on selecting Tuesday or Thursday for expiry days.
- The alterations to the futures and options contracts aim to streamline practices across stock exchanges.
- The move comes after SEBI requested exchanges to confirm their preferred expiry day by a specified deadline.
- Stock exchanges are required to adhere to SEBI's new regulations regarding the expiry dates of derivatives contracts.
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