NSE to Shift Weekly F&O Expiry to Tuesday, BSE Likely to Get Thursday

The National Stock Exchange (NSE) has announced a strategic change in its derivatives market schedule by shifting the weekly expiry of futures and options (F&O) contracts to Tuesdays from the current Thursday slot. This change, approved by market regulator SEBI, will come into effect from September 27, 2025, and will apply to all equity derivatives contracts on the NSE platform.

Similarly, BSE’s derivative contracts which expire on or before August 31, 2025 will continue with the present expiry day, while contracts that are to expire after September 1, 2025 could see their expiry day change to Thursday.

A Measured Move to Enhance Market Efficiency

The decision marks a significant step in India's capital market reforms. By moving the expiry cycle to Tuesday, NSE intends to address instances of elevated market volatility often observed on expiry days, particularly Thursdays, which tend to coincide with macroeconomic events, policy announcements, or global data releases.

Moreover, market analysts suggest that a Tuesday expiry could allow for a more efficient hedging and trading mechanism, especially for institutional participants who align their portfolios across geographies and time zones.

SEBI's New Derivatives Framework: Alignment with Broader Market Strategy

This strategic move by the NSE is a direct response to new regulations for equity derivatives introduced by SEBI in May. The core of these revised norms mandates a streamlined approach: all equity derivative contracts must now expire exclusively on either a Tuesday or a Thursday. This regulatory clarity aimed to standardise expiry patterns across the exchanges. Within this framework, each exchange was granted the autonomy to select one of these two designated days for the weekly expiry of its benchmark index options contract. 

It was also made clear that any alterations to an exchange's chosen expiry day would necessitate prior approval from SEBI. The regulator had proactively sought the preference of stock exchanges regarding their chosen expiry day, setting a deadline of June 15 for their responses. The NSE's decision to opt for Tuesday aligns with this new regulatory mandate.

The NSE’s shift follows the lead of other stock exchanges that have revised their contract expiry cycles to distribute trading volumes more evenly across the week. It also aligns with NSE’s broader initiatives to deepen market liquidity, enhance product efficiency, and improve risk containment in the derivatives segment, which has grown to account for a substantial share of overall market turnover.

With the regulatory green light from SEBI, the Tuesday expiry model will also give the exchange a unique edge in terms of product differentiation, possibly drawing higher volumes from market participants preferring mid-week positioning over end-of-week settlements.

Transition Timeline and Market Preparedness

The transition will formally commence from September 27, and all weekly equity derivative contracts introduced thereafter will carry Tuesday expiries. For contracts already listed before that date, the Thursday expiry remains intact, thereby offering a phased implementation and avoiding disruption in trading strategies currently in place. For example, if a contract was earlier set to expire on September 26 (Thursday), it will now expire on September 24 (Tuesday).

Market participants, including brokers and fund managers, are expected to update their systems and client communications to accommodate this change. NSE has also indicated that mock sessions and simulation environments will be provided ahead of the rollout to ensure seamless adaptation.

Conclusion

NSE’s move to pre-pone the F&O expiry day is a structural shift in India’s derivative markets. With SEBI’s backing, the change is positioned to reduce volatility, improve trading efficiency, and bring India’s expiry structure closer to international standards. Market stakeholders now await the implementation phase, which will test the efficacy of this strategic adjustment in real-time trading conditions.

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