Sebi Proposes Standardization of Equity Derivatives Expiry Days

Key Proposal by Sebi

• Equity derivatives expiries to be restricted to Tuesdays or Thursdays for each exchange.
• Exchanges must choose either of the two days.

Current Expiry Days (Since January 2025)

• BSE: Tuesday
• NSE: Thursday

NSE’s Recent Proposal & Sebi’s Intervention

• NSE proposed shifting expiry to Monday.
• Sebi’s move aims to standardize settlement cycles and prevent disruption.
• Implication: NSE may have to withdraw its plan to shift expiry to Monday.

Impact on Markets

• Ensures consistency in settlement cycles.
• Prevents exchange-level changes from disrupting market stability.
• Enhances regulatory clarity for traders and investors.

Sebi’s move seeks to streamline derivatives trading while balancing market efficiency and risk management.

BS