NSE Seeks Tuesday as Weekly Expiry Day, SEBI Likely to Approve Soon
In a potential move that could reshape trading volumes on Indian exchanges, the National Stock Exchange (NSE) has formally requested Tuesday as the weekly expiry day for its derivative contracts. This would align it with Bombay Stock Exchange (BSE), which currently holds its weekly expiry on the same day.
Sources familiar with the matter informed the Hindu Times Group that the Securities and Exchange Board of India (SEBI) is currently reviewing the proposal and may issue a formal directive shortly.
What’s the Current Expiry Day Setup?
As of now:
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NSE conducts weekly index options expiry on Thursdays
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BSE carries out weekly Sensex options expiry on Tuesdays
This separation was initially designed to distribute volume and reduce excessive volatility on a single day.
What Has Changed?
In March 2025, SEBI released a consultation paper proposing that exchanges choose Tuesday or Thursday as expiry days. The aim was to avoid overlap and provide fair competition.
The matter was recently taken up by SEBI’s Secondary Market Advisory Committee (SMAC), which deliberated on whether both major exchanges can share the same expiry day.
Impact on BSE If NSE Gets Tuesday
Industry experts and insiders suggest that if NSE is allowed to shift its expiry to Tuesday, it may cause a significant shift in trading volumes:
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BSE’s Sensex options volumes could decline by nearly 20%
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NSE’s market share in index options could climb by approximately 5%
The logic is simple: traders prefer the deeper liquidity and tighter spreads that NSE typically offers. A same-day expiry may tilt the balance in NSE’s favor.
Regulator’s Take
Responding to media queries, SEBI Chairman Tuhin Kanta Pandey confirmed that a circular addressing the expiry day policy would be released later this month, once public feedback on the consultation paper is reviewed.
Neither SEBI nor NSE have officially commented on the latest developments, while CNBC-TV18’s report on the issue caused BSE’s stock to fall by over 5.2%, trading at ₹6,928 at last check.
Why This Matters
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The weekly expiry day is a strategic element for exchanges competing for volume.
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Derivative traders often flock to venues with higher liquidity, tighter spreads, and predictable price movement.
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If NSE and BSE share expiry days, it could lead to direct competition for volumes, particularly in index options.
Investor Insight
Investors and traders should watch for SEBI's official directive. If NSE is granted Tuesday expiry, expect volume migration, pricing adjustments, and potentially higher intraday volatility on Tuesdays moving forward.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult a certified financial advisor before making investment decisions.
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