BSE shares fall nearly 2% as SEBI directs F&O expiry day to be either Tuesday or Thursday

BSE shares fall nearly 2% as SEBI directs F&O expiry day to be either Tuesday or Thursday

Shares of BSE Ltd fell nearly 2% on May 27 a day after market regulator SEBI directed exchanges to choose Tuesday or Thursday for F&O expiry.

Every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day -- either Tuesday or Thursday. Also, besides benchmark index options, all the other equity derivatives contracts expiry will be in the last week of every month on their chosen day i.e. Tuesday or last Thursday of the month, SEBI said in a circular on May 26.

SEBI has directed exchanges to submit their proposal to it for the selection of expiry day by June 15, 2025.

At 3:05 pm on May 27, BSE shares on NSE were trading 1.8% lower at Rs 2,406 apiece. The 52-week high of the stock is Rs 2,529 and 52-week low is Rs 705. It is to be noted that the BSE share price is adjusted to the 2:1 bonus issue that came into effect last week.

Global brokerage firm Goldman Sachs maintained a 'Neutral' rating on BSE amid the likelihood of NSE picking Tuesday for F&O expiry.

According to Goldman Sachs, if this proposed change is approved, BSE’s market share in index options premiums could drop by around 3 to 4 percentage points, or roughly 15%. This would lower its share to 18.8% from the current 22.2%, based on year-to-date trends.