NSE Shakes Up Market: Calls for Unified Expiry Day Amid BSE Stock Plunge

BSE Ltd shares fell nearly 9% after NSE announced a shift in its F&O contract expiry days to Monday, effective April 4. Previously, NSE’s weekly expiries were on Thursdays, while BSE had them on Tuesdays. Analysts believe this change could impact BSE’s derivatives volumes, which contributed ₹353 crore to its Q3FY25 income. The stock had surged from ₹532 in April 2023 to ₹6,047 in February 2025 but dropped sharply after NSE’s decision. Goldman Sachs also downgraded BSE to “neutral” due to SEBI’s proposed regulations on derivatives trading.

NSE defended the move, citing efficiency and geopolitical risks over weekends. Experts suggest a unified expiry day for all exchanges to reduce speculation. NSE’s Chief Business Officer, Sriram Krishnan, stressed that market stability should take priority. Market watchers fear increased volatility as traders manage weekend positions. SEBI may intervene if expiry shifts cause confusion. NSE is monitoring market response and open to adjustments.

NSE Shakes Up Market: Calls for Unified Expiry Day Amid BSE Stock Plunge

The National Stock Exchange (NSE) has announced a significant shift in its derivatives expiry schedule, moving Nifty weekly contracts from Thursday to Monday, citing concerns over geopolitical events affecting markets over the weekend. Sriram Krishnan, NSE’s Chief Business Development Officer, suggested that a unified expiry day across all exchanges could be a more effective approach to managing speculation and ensuring market stability. He emphasized that the decision was driven by efficiency rather than market share concerns, stating that the exchange would monitor the impact and reassess if necessary.

The change, set to take effect from April 4, comes amid a broader trend of exchanges adjusting expiry schedules, with BSE having recently moved its expiry day from Friday to Tuesday. Market analysts believe this could lead to increased trading activity on Fridays, as traders may prefer to close positions ahead of the weekend rather than wait until Monday. However, concerns have been raised about potential volatility due to open positions being held over the weekend.

Krishnan clarified that NSE’s decision was not based on market share analysis but rather on broader market conditions. He also noted that while SEBI does not require pre-approval for expiry date changes, frequent shifts across exchanges could prompt regulatory intervention. He highlighted that SEBI’s primary objective in regulating expiries is to control speculative trading, and having different expiry days across multiple exchanges might undermine that goal. A consolidated expiry day, he argued, could be a more effective solution.

Looking ahead, NSE remains open to adjusting its strategy based on market feedback. Krishnan underscored the importance of investor education, as data indicates that retail traders often incur losses in options trading.

When asked whether NSE would reconsider Monday expiries if BSE altered its schedule, he stated that the exchange would evaluate market responses and adapt as needed to serve traders’ best interests. He emphasized that NSE’s primary objective is to ensure a smooth trading experience and optimize efficiency in the derivatives segment. The decision to shift expiry dates was made after analyzing global market trends, trading behaviors, and risk factors associated with weekend geopolitical events.

He further explained that NSE remains open to further adjustments if market feedback indicates significant disruptions or inefficiencies. While the Monday expiry shift is intended to provide traders with a more stable and predictable environment, NSE will continuously assess the impact on liquidity, volatility, and overall participation in the derivatives market. The exchange will also collaborate with SEBI and other stakeholders to ensure that any changes align with broader market stability objectives.

Ultimately, NSE aims to make data-driven decisions while keeping trader confidence and market integrity at the forefront.