By Ananya Grover
The Securities and Change Board of India (Sebi) has caught to its weapons by mandating a two-day weekly expiry regime for inventory exchanges. In a round on Monday, the markets regulator mentioned that the expiries of fairness derivatives contracts of all exchanges will occur both on Tuesday or Thursday and has requested exchanges to hunt its approval earlier than launching or modifying any contract expiry or settlement day.
The round comes amid growing competitors between the BSE and NSE for market share within the futures and choices (F&O) phase. The regulator had floated a session paper on the identical in late March following NSE’s announcement to shift the weekly and month-to-month expiry day for Nifty contracts to Monday — only a day earlier than BSE’s expiry on Tuesday.
As of March 2025, BSE’s market share within the derivatives market was at 36.5 per cent, having considerably risen from 4.2 per cent within the second quarter of FY24.
Following the market regulator’s tips, sources mentioned that NSE is more likely to search Tuesday as expiry day for its by-product contract, because it may compress BSE’s buying and selling exercise into simply two days per week. This might probably shifting market share again towards NSE. On the identical time, trade gamers imagine that limiting expiry days to Tuesday or Thursday may assist smoothen market exercise, apart from lowering the burden on surveillance techniques. As well as, retail traders who’ve been going overboard on derivatives market would see easier buying and selling patterns.
In accordance with the regulator, within the multi-exchange framework, spacing out of expiry days by means of the week reduces focus danger and supplies a chance to inventory exchanges to supply product differentiation to market individuals. “On the identical time, too many expiry days has the potential to revive expiry day hyperactivity which may jeopardize investor safety and market stability,” it famous. The regulator has requested the exchanges to submit their proposals by June 15.
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