Last Updated:June 18, 2025, 14:19 IST
The NSE will soon move its weekly equity derivatives expiry to Tuesday, while the BSE will shift to Thursday; Key points to know
F&O Expiry Shift
The National Stock Exchange (NSE) will soon move its weekly equity derivatives expiry to Tuesday, while the Bombay Stock Exchange (BSE) will shift to Thursday, ensuring that expiry days no longer overlap across the two major Indian bourses. The transition, effective from September 2025, follows a mandate from the Securities and Exchange Board of India (SEBI) limiting expiry days for equity derivatives to two in a week.
While both Tuesday and Thursday provide five trading sessions ahead of expiry, experts say the nuances between the two days will significantly influence trading strategies. “It’s a win-win for both exchanges,” said Chandan Taparia, Head of Technical and Derivatives Research at Motilal Oswal Financial Services. “Short-term traders may prefer NSE, while positional traders can benefit from BSE.”
Contracts expiring on or before August 31, 2025, will maintain their existing schedules, and only new contracts will adopt the revised structure.
Weekend Effect and Trading Strategies
The expiry day plays a critical role in shaping derivatives strategies, particularly for option buyers and sellers. “With Tuesday expiries, weekend time decay becomes a key factor,” Rohit Srivastava, Founder of IndiaCharts told Moneycontrol.com. “Options buyers tend to exit by Friday to avoid losing value over the weekend, leading to more day-trading volume on Mondays and Tuesdays.”
This structure benefits intraday traders and those deploying ‘hero to zero’ strategies, Srivastava added. “It creates higher volatility and volume in the early part of the week, which is likely what NSE is targeting.”
By contrast, Thursday expiries allow positional traders more flexibility. “They can carry trades through the week without worrying about weekend decay,” Srivastava explained. While the broader impact on BSE may be limited, he noted that “NSE’s expiry will likely draw higher day-trading volumes.”
Impact on Brokerages and Market Evolution
Brokerage revenues are expected to remain stable or even rise in the near term as traders adjust. “This is more of a volume reallocation than a reduction,” said Hardik Matalia, Derivatives Expert at Choice Broking. “SEBI’s intent is to bring discipline and reduce speculative churn on expiry day.”
Options Dynamics and Strategic Windows
A key consideration is how the new schedule affects the life cycle of options. Traders generally build positions on Friday, react to global cues on Monday, and adjust ahead of Tuesday’s expiry. This gives NSE a three-day window (Friday, Monday, Tuesday) for premium buildup and theta decay — a scenario favourable to option sellers.
On the other hand, BSE’s Thursday expiry compresses this cycle. With no trading on Friday for the next expiry, traders get only two meaningful days — Tuesday and Wednesday — to build strategies. “This reduces flexibility and forces faster adjustments,” a trader at a large proprietary desk told Moneycontrol.com.
NSE’s Edge and Market Share Implications
The structural advantage of an early-week expiry could help NSE reclaim market share. Sudeep Shah, Deputy VP and Head of Derivatives Research at SBI Securities, told Moneycontrol.com, “This move will give NSE a strategic edge with higher trading intensity around expiry. Expect more speculative action and volume spikes.”
From April to June 2025, BSE’s F&O share jumped from 3.1% to 12.6%, primarily driven by its Tuesday expiry. With NSE reclaiming that slot, analysts expect it to recover up to 5% of index options market share.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- First Published:
#Expiry #Shift #NSEs #Tuesday #BSEs #Thursday #Expiry #Traders #Markets #News
