Sebi Plans New Expiry Days for Stock Derivatives Contracts

Sebi proposes to change equity derivatives expiry days to Tuesdays or Thursdays. This aims for better organization in stock trading. Feedback due by April 17, 2025.

sebi proposes to limit fo expiry to either tuesday or thursday

The Securities and Exchange Board of India (Sebi) is planning to change how and when we trade certain stock options. They want to have all equity derivatives (stock contracts) expire on either Tuesdays or Thursdays. This is to make trading easier and more organized, while not picking the beginning or end of the week as expiration days.

This proposal comes after the National Stock Exchange (NSE) decided to change its option expiry dates for some stock categories to Mondays starting April 4, 2025. They will still allow one weekly option for major stock indexes to expire on either Tuesday or Thursday, but everything else will need to last at least a month and expire in the last week of the month.

Also, any exchange that wants to start or change an expiry date must get approval from Sebi first. This helps to keep the stock market stable and protects investors. The last date to give feedback on this proposal is April 17, 2025. Currently, the Bombay Stock Exchange (BSE) has its single-stock and index contracts expiring on Tuesday.

Comments

Leave a Reply