Post by : Minna

Photo: PTI

The Bombay Stock Exchange (BSE) saw a 6% drop in its stock price on Wednesday morning following the announcement of a major change to its equity derivatives contracts expiry day.

On Tuesday, BSE revealed that the Securities and Exchange Board of India (Sebi) had approved Thursday as the new expiry day for derivatives contracts, replacing the previous expiry on Tuesdays. The BSE confirmed this in an official circular and emphasized that the change would start for new contracts expiring after September 1, 2025.

Under the new rules, the monthly contracts will now expire on the last Thursday of each month. BSE also stated that there would be no fresh weekly contracts introduced for index futures starting July 1, 2025.

The change comes as part of Sebi's broader plan to standardize expiry dates for equity derivative contracts, allowing for a consistent approach on both the National Stock Exchange (NSE) and the BSE.

This announcement stirred up some uncertainty in the market, causing a sharp drop in BSE’s stock price, which had been rising steadily. Last week, BSE shares had reached an all-time high of ₹3,030, marking a 239% rise compared to the previous year. However, the market reaction to the changes led to a 6% decrease in the stock price, with BSE shares trading at ₹2,500 as of Wednesday morning.

Despite the recent drop, the stock remains up more than 174% from its price of ₹912.16 a year ago. There were rumors in the market that the National Stock Exchange (NSE) may soon announce its own IPO, but experts have warned that this may not happen anytime soon.

The BSE has also stated that for existing contracts, the expiry day will remain unchanged, except for certain long-dated index options contracts, which will be realigned in line with previous practices.

This change in expiry dates has sparked discussions about market share, especially after the introduction of a single benchmark index per exchange for weekly options contracts last year.

BSE also confirmed that it will continue with the current expiry day for derivative contracts that expire on or before August 31, 2025.

As for the NSE, it confirmed that it too would shift the expiry day for its equity derivatives contracts to Tuesday, in line with Sebi’s decision. The changes in expiry days are expected to impact both exchanges, with investors closely watching how the adjustments will affect their portfolios in the coming months.

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