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SEBI Plan: Equity Derivatives Expiry Only on Tuesday or Thursday

28 March 20251 min read
BANKING & FINANCESEBI Plan: EquityDerivatives ExpiryOnly on Tuesdayor Thursday28 March 2025safalsetu.com

Why in the news

SEBI suggested fixing equity derivatives expiry to just two weekdays, a step that could block NSE’s proposal to shift its expiry to Monday.

Key facts

  • Proposal: expiries limited to Tuesday or Thursday; every exchange must choose one of them.
  • NSE’s idea: move expiry to Monday; SEBI’s proposal may force NSE to drop it.
ExchangeExpiry day since January 2025
BSETuesday
NSEThursday

Why SEBI wants this

  • Standardise settlement cycles and avoid disruption.
  • Stop exchange-level changes from unsettling the market.
  • Give traders and investors clearer rules.

Significance

The move aims to streamline derivatives trading while balancing market efficiency with risk management.

Exam angle

  • Permitted expiry days: Tuesday or Thursday.
  • Regulator: SEBI.
  • Day NSE wanted: Monday.

Test yourself

1. On which days would SEBI allow equity derivatives expiries under its proposal?

Exchanges must pick either Tuesday or Thursday.

2. Which exchange currently has its equity derivatives expiry on Tuesday (since January 2025)?

BSE expires on Tuesday; NSE on Thursday.

3. Which day had NSE proposed for shifting its derivatives expiry?

NSE proposed Monday, which SEBI's plan may block.