
NSE had planned to make Monday the expiry day from April 4. But now it has been postponed till further orders. This decision has been taken after the new decision of market regulator SEBI. SEBI has issued a consultation paper regarding F&O expiry. SEBI has said that opinions will be taken from all parties before deciding the expiry day.
SEBI's proposal- SEBI has suggested that the expiry day can be kept on Tuesday or Thursday. The last date for giving opinion has been fixed as 17 April.
What will be its effect? Until a final decision is taken, the existing expiry schedule will remain in force. Indian market regulator SEBI has given an important suggestion - now every stock exchange can be allowed to keep the expiry of its equity derivatives (F&O) contracts only on Tuesday or Thursday. Actually, this step has been taken after the decision of NSE to remove the expiry of Nifty, Bank Nifty, FinNifty and other indexes from Thursday to Monday. This new rule of NSE will come into effect from 4 April 2025. Key points of SEBI's proposal: - Every exchange will get the option of weekly expiry on only one day - Tuesday or Thursday. Only benchmark index options will be allowed weekly expiry. All other contracts such as index futures, non-benchmark index options and stock options will have a minimum validity of 1 month and expiry in the last week of every month. Now before implementing any new contract or expiry date, the exchange will have to take approval from SEBI. What is the purpose of SEBI - SEBI says that more expiry dates increase unnecessary turmoil and risk in the market.
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