NSE Reschedules F&O Expiry to Mondays Starting April 2025

The National Stock Exchange (NSE) has announced a revision in the expiry dates for all Nifty index weekly derivatives contracts. Starting April 4, 2025, the expiry for Nifty weekly Futures & Options (F&O) contracts will shift from Thursday to Monday of the expiry week.

This adjustment will also apply to Nifty's monthly, quarterly, and half-yearly F&O contracts, which will now expire on the last Monday of the respective expiry month instead of the last Thursday. Additionally, the expiry schedule for Bank Nifty, FinNifty, Nifty Midcap Select, and Nifty Next50 F&O contracts will be modified accordingly, taking effect from April 4, 2025. Existing contracts will transition to the new schedule at the end of trading on April 3, 2025.

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The primary objective of this change is to standardize and streamline the expiry process for market participants. Derivatives, including futures and options, are financial instruments linked to real assets or securities indices. While futures contracts require the mandatory purchase or sale of an underlying asset at a predetermined date, options provide the right—but not the obligation—to do so at a fixed price within a specified timeframe.

Market expert Anil Singhvi suggests that NSE's decision may be aimed at countering competition from BSE. With an increase in BSE's Sensex weekly expiry trading volume, the exchange’s market valuation has been positively impacted. By shifting its expiry to Monday, NSE could potentially recapture a portion of the futures trading share. Singhvi also noted that while the change is significant, it is unlikely to cause major market disruptions. BSE might respond by adjusting its own expiry dates to Thursday or Friday.

Market Implications for Traders

• Trading Volume Fluctuations: The move to a Monday expiry may lead to increased volatility at the start of the trading week, as opposed to midweek fluctuations.
• Liquidity Adjustments: Liquidity patterns, particularly for Bank Nifty and FinNifty traders, could experience shifts due to the expiry rescheduling.
• BSE’s Potential Response: If BSE revises its expiry dates, it may sustain its growing market presence in derivatives trading.
   

Overall, NSE’s strategic decision aims to enhance trading efficiency while potentially influencing competition within the derivatives market. Traders will need to adapt their strategies accordingly as the new Monday expiry structure takes effect in April 2025.