F&O expiry: SEBI directs exchanges to choose Tuesday or Thursday; bourses to apply by June 15

Sebi has also asked exchanges to seek prior approval before modifying the expiry days.

Market regulator Securities and Exchange Board of India (SEBI) has directed exchanges to apply afresh for equity derivatives expiry days in a final circular issued on Monday. Currently NSE has F&O expiry on Thursday and BSE has its F&O expiry on Tuesday.

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 in a consultation paper issued on March 27 had proposed fixed days of expiry. It had cited the need for spacing in expiry and also asked exchanges to wait till the final circular is out.

The regulator has also asked exchanges to seek prior approval before modifying the expiry days. Moreover, SEBI has directed exchanges to submit their proposal to it for the selection of expiry days by June 15 of 2025.