India’s National Stock Exchange (NSE) has declared that it will modify the expiration day for futures and options (F&O) of Nifty Bank, moving it from Thursday to Friday, starting on July 14, 2023. As per the new regulation, the weekly expiration of Nifty Bank contracts will happen every Friday. In case Friday falls on a trading holiday, the previous trading day will be considered the expiration day. The clearing corporations will later publish the settlement schedule based on the new expiration date. BSE, a competing exchange, has already shifted its expiration day to Friday for its Sensex and BANKEX indices from May 12.
India’s largest derivative bourse The National Stock Exchange of India is an Indian stock exchange, located in Mumbai. It was established in 1992 as the first electronic exchange in the country. It offers trading in equities, derivatives, and currency derivatives. The NSE has a wide range of market participants, including retail and institutional investors, and has become the preferred exchange in India for trading in equities and derivatives. It has also achieved global recognition for its efficient and reliable trading platform. ( NSE On Tuesday, it was made known that the F&O expiry for futures and options will be changed by the company. Nifty Bank The new regulation will be enforced from July 14, changing the day from Thursday to Friday.
According to a circular from NSE, starting from July 7th, 2023, all contracts that previously expired on Thursdays will now expire on Fridays. This change will take effect on July 6th, 2023, and the first Friday expiry will be on July 14th, 2023.
The current regulations state that the Nifty Bank weekly contracts come to an end on Thursdays and on the final Thursday of the month when it comes to monthly and quarterly contracts.
Starting from the middle of July, NSE changed their schedule for weekly expiration to occur every Friday. If Friday happens to be a day where trading is not available, then expiry will take place on the previous trading day.
If you have a monthly contract in the derivative category of the commonly followed banking index, it will end on the final Friday of the month.
On July 6, NSE announced that the expiry and maturity dates for all current F&O contracts will be changed to Friday by the end of the trading day. This means that existing contracts that were set to expire on Thursday, July 13 will now be postponed to Friday, July 14.
The current contract which expires on the last Thursday of August, specifically August 31st, will now expire earlier on August 25th, which falls on a Friday, during the same month.
The National Stock Exchange (NSE) stated that all new trading contracts formed after the end of the day on July 6, 2023, must adhere to the newly revised expiration dates listed in the table. It was also mentioned that no other modifications were made to the Nifty Bank’s current contract specifications and members need to take note of this.
The exchange stated that on July 06, 2023, the circular will be implemented, and revised contracts will be available for trading on July 07, 2023. Members are instructed to acquire the modified contract.gz file from the extranet path faoftp/faocommon before participating in trading on July 07, 2023.
The NSE has changed the expiry day of its indices, following the BSE’s decision to do the same for its Sensex and BANKEX indices beginning May 12.
