Just in: NSE revises Bank Nifty contract cycle!

In the circular dated June 06, 2023, the National Stock Exchange of India (NSE) has announced the revision of the Nifty Bank Futures and Options contract cycle for the weekly and monthly expiry. The headline news is that the expiry day would be shifted from “Thursday” to “Friday” for all the weekly and monthly Nifty Bank Futures and Options contracts.

The above shall be effective from the trade date of July 07, 2023, i.e., Friday, and accordingly, all the existing Bank Nifty contracts with Thursday expiry would be revised to Friday, July 06, 2023, end of day. Subsequently, the first Bank Nifty Friday expiry will be on July 14, 2023.

In the case of weekly contracts, all existing weekly contracts shall expire on Friday of every week, effective July 7, 2023. With this, the expiry of the existing maturity on July 13, 2023 (Thursday) shall be revised to July 14, 2023 (Friday). If Friday is a trading holiday, then the expiry shall be shifted to the previous trading day.

For monthly contracts, all contracts shall expire on the last Friday of the respective contract month. If Friday is the trading holiday, then the monthly expiry shall be shifted to the previous trading day. Also, if the expiry date of the existing contract matures on the last Thursday of the month, i.e., August 31, 2023 (Thursday), it shall be preponed to August 25, 2023 (Friday).

Thus, it should be noted that any new contract created for trading after the end-of-day (EOD) July 6, 2023, shall be created as per revised expiry days as mentioned above. Also, market participants should take note that there has been no change in any other existing contract specifications of Bank Nifty.

This NSE Circular shall come into effect from EOD of July 06, 2023, and revised contract specifications shall be available for trading from July 07, 2023.