National Stock Exchange scraps plan to shift the expiry of Bank Nifty to Friday

As per the joint press release by NSE and BSE on Tuesday informed that the National Stock Exchange (NSE) has scrapped the plan to shift the expiry of Nifty Bank derivative contracts to Friday from Thursday. Nifty Bank futures and options will continue to expire on Thursday, said in the press release.

The National Stock Exchange of India Limited (NSE) vide Circular Ref. No: 88/2023, dated June 06, 2023, moved the expiry day for Nifty Bank Future & Options (F&O) contracts to Friday from Thursday, effective from the trade date of July 7, 2023, with all existing contracts with Thursday expiry will be revised to Friday on July 6 by the end of the day. The first Friday expiry will be on July 14.

The proposed Friday expiry of Bank Nifty coincides with the expiry of the Sensex/ Bankex F&O contracts that were relaunched by BSE with effect from May 15, 2023. BSE, based on market feedback feels that this can potentially impact the growth of Sensex/Bankex derivatives.  Considering the need for balanced market development and avoidance of concentration risk in the market, BSE has requested NSE to consider shifting the Bank Nifty expiry to any day other than Friday.  This will help in growing this complementing Sensex/Bankex derivatives and thus de-risk the market.

Based on this, NSE, in the interest of market development has decided to withdraw the Circular Ref. No: 88/2023 with immediate effect. Members are hereby advised to note the following revision. Any further change will be duly notified by NSE.

BSE will continue to strive hard in its endeavour to continue and provide innovative and complimentary products to the market.

The NSE last month announced that the expiry day for Nifty Bank F&O contracts is Friday from Thursday, effective from the trade date of July 7, 2023.

Source: BSE, NSE