NSE changes expiry day for equity derivatives contracts

The National Stock Exchange of India (NSE) has taken a pivotal decision on the conflicting expiry schedule for the equity derivatives contracts, moving the date of expiry from the typical Thursday towards Monday’ as from April 4, 2025. 

Revised Expiry Schedule

• The change in the new schedule will now apply as follows for other derivatives contracts:
• Nifty Weekly Contracts: These previously expired on Thursdays; thus, they will now expire on Mondays of each week.
• Monthly and Quarterly Contracts: These will now expire at the end of the current month or quarter on the last Monday of every month or quarter. Contracts of Nifty, Bank Nifty, Fin Nifty, Midcap Nifty, Nifty Next 50, and individual stocks were formerly expiring on Thursdays.
• For example, the Nifty monthly contract that used to expire on the last Thursday of April will now expire on the last Monday of April.

Rationale Behind the Change

• The rationale for this change is there are a number of factors shaping this strategy:
• Market Feedback: The NSE has taken into account all the opinions of traders and investors, including foreign participants, who desired a different expiry day for efficiency in trading and reduced operational overlaps. 
• Competitive Positioning: The new expiry schedule is expected to ensure that the NSE retains its market leadership in anticipation of competition from new exchanges coming into the equity derivatives space. 
• Regulatory Compliance: In accordance with the latest directives of the Securities and Exchange Board of India (SEBI) for streamlining derivatives trading and reducing excessive speculation risks, the NSE’s decision reflects a commitment to regulatory standards.

Transition Plan

Smooth Transition in Facilitation: Existing Contracts: All presently open contracts shall have their expiry dates adjusted in accordance with the new calendar for April 3, 2025. E.g., if a contract expires on Thursday, April 24, 2025, it will now expire on Monday, April 28, 2025.

New contracts: All new contracts introduced on or after the said date shall be subject to the new Monday expiry provisions.

Communication: The NSE has issued detailed circulars and guidelines for all stakeholders to inform them about the changes and provide their support during the transitions.

Conclusion 

The NSE decision changing the expiry day for equity derivatives contracts turns out to be a very important step on the path of Indian financial markets. From Thursday to Monday, as of 4th April 2025, its point is expected to improve its market efficiency and regulatory compliance while keeping a competitive edge for the exchange. All the market participants are advised to note the new schedule and make all necessary adjustments in trading and operation strategies to cope with the new transition easily.

FAQs

1. Why did the NSE change the expiry day for equity derivatives contracts?

The NSE made the revision of the expiry day for equity derivatives contracts to Monday on the ground of feedback obtained from market players and differentiating itself in a scene likely to face competition as well as improving efficiency in trading and regulatory compliance.

2. How will it be on my existing derivatives contracts?

All existing open contracts as of April 3rd, 2025, will have expiry dates adjusted to the new Monday scheme. Refer NSE announcement for complete details. 

3. What will the traders do to harmonize with this change?

Traders ought to assess and modify their strategies accordingly based on the new Monday expiry date with considerations for anticipated changes in trading volumes and volatility patterns.