In a key development for the derivatives market, SEBI has granted approval to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for new expiry days. Starting September 1, 2025, NSE’s index derivative contracts will expire on Tuesdays, while BSE’s contracts will shift to Thursdays.

This move comes as part of SEBI’s efforts to streamline expiry schedules across exchanges and curb excessive trading activity.

The communication was formally conveyed to both exchanges, and the changes will be applicable to contracts expiring after August 31, 2025. For contracts that expire on or before this date, the existing expiry schedule will remain unchanged, except for a few long-dated index options, which will be realigned.

Final Expiry Days Decided

NSE Expiry Day: Tuesday (from Sept 1, 2025)
BSE Expiry Day: Thursday (from Sept 1, 2025)
MSE (Metropolitan Stock Exchange): Will also get Tuesday expiry when it launches derivatives

This decision was finalized after discussions at SEBI’s Secondary Market Advisory Committee (SMAC). The committee had been evaluating proposals from both exchanges to avoid overlap and ensure clarity for traders.

The expiry day reshuffle is aimed at improving efficiency and giving exchanges individual visibility on expiry days.

Background of the Shift

Initially, NSE had proposed a shift to Thursday expiries back in November 2024. However, in a surprising move in March 2025, NSE expressed its intent to seek Monday as the new expiry day, aiming to stay ahead of BSE. Eventually, SEBI settled the matter in favor of Tuesday for NSE, aligning with its March 27 draft circular.

SEBI Chairman Tuhin Kanta Pandey had earlier hinted in May that a formal circular regarding expiry days was in the pipeline and would be released soon. This latest update confirms that the regulator is following through on its intention to streamline F&O expiry processes.

Strategic Shift to Regain Market Share

The move to Tuesday expiry is seen as a strategic play by NSE to regain market share in the index derivatives segment, especially after BSE made significant gains with the popularity of its Sensex derivatives.

NSE remains the world leader in derivatives volume and is keen to maintain its edge through this change.

On the other hand, BSE’s revenue in FY25 has been significantly driven by derivatives, particularly the Sensex contracts, with a record average daily premium turnover of ₹11,782 crore in Q4. BSE also saw strong growth in equities turnover, with ₹7,766 crore daily average in the first half of FY25.