SEBI interchanges derivative expiry days of exchanges

In a significant regulatory update, the Securities and Exchange Board of India (SEBI) has announced changes to the weekly derivative expiry days for the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Effective from September, the NSE will see its weekly derivatives expire on Tuesdays, while the BSE will have its expiries on Thursdays. This strategic move aims to streamline trading activities and reduce market congestion on a single day. The decision to interchange the expiry days comes after careful consideration of trading patterns and stakeholder feedback. By staggering the expiry days, SEBI seeks to enhance market efficiency and provide traders with more flexibility in managing their portfolios. This change is expected to mitigate the risk of volatility that often accompanies simultaneous expiries, thereby fostering a more stable trading environment. Market participants have reacted with cautious optimism, noting that the new schedule could lead to more balanced trading volumes across the exchanges. Analysts believe that this adjustment will encourage greater participation from institutional and retail investors, as it allows for better risk management and strategic planning. As the new expiry days take effect, stakeholders will closely monitor the impact on liquidity and market dynamics in the coming months.

— Authored by Next24 Live