BSE Shifts Expiration Days For Sensex and other Derivative Contracts To Tuesday

BSE Ltd., one of India’s leading stock exchanges, has made significant changes to the expiration schedule of its index derivative contracts, effective from January 1, 2025. The move impacts weekly, monthly, quarterly, and semi-annual contracts for Sensex, Bankex, and Sensex 50 indices. This revision comes in response to new regulatory guidelines from the Securities and Exchange Board of India (SEBI), aimed at streamlining the derivatives market.

Weekly and Monthly Changes in Expiry Days

The expiration days for weekly Sensex derivatives, previously scheduled for Fridays, will shift to Tuesdays starting in January 2025. Monthly contracts for the benchmark index will also adopt the same Tuesday expiration schedule. For the Bankex index, the monthly contracts will now expire on the last Tuesday of the expiration month, instead of Monday. Similarly, the Sensex 50 monthly contracts will see their expiration day change from the last Thursday to the last Tuesday of the expiration month.

Quarterly and semi-annual Sensex contracts will also adopt the last Tuesday as their new expiration date, moving away from the earlier Friday schedule.

SEBI’s Role in Driving the Revisions

The adjustments follow SEBI’s recent directive to limit weekly options contracts to one per exchange, a rule implemented on November 20, 2024. This regulation is part of broader measures to address volatility and mitigate speculative trading in the F&O segment. Complying with these guidelines, BSE discontinued its weekly index derivatives for Sensex 50 and Bankex earlier this month.

BSE has confirmed that the expiration dates for all existing index futures and options contracts will be updated after the trading day on December 31, 2024. The exchange has also shared illustrations of the revised schedule for January 2025, clarifying how the adjustments will apply to upcoming expirations.

BSE Share Performance

The stock of BSE Ltd. currently trades at Rs.4,642.15 per share, The stock is up by 8% over the past month and at the same time, it is more than doubled on a Year-To-Date basis.

Conclusion: The revised expiration schedule for Sensex, Bankex, and Sensex 50 index derivative contracts will take effect starting January 1, 2025, aligning with regulatory updates from SEBI.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.