NSE Announces New Expiry Days for Nifty Bank, Nifty Midcap Select Index

The National Stock Exchange on Wednesday made an announcement regarding a modification in the expiry days for Nifty Bank options and Nifty Midcap Select Index futures and options.

Nifty Bank weekly index options will undergo a change in their expiry day, transitioning from Thursday to Wednesday commencing from September 4. The initial Wednesday weekly expiry for Nifty Bank will be on September 6.

As per the circular issued by the NSE, all weekly contracts will henceforth expire on Wednesday of each week, excluding the expiry week of the monthly contract.

NSE also stated that, if Wednesday is a trading holiday, then the expiry day is the previous trading day.

It is important to note that the changes announced specifically pertain to the expiry day of Bank Nifty’s weekly contracts. The expiry days for monthly and quarterly contracts, however, remain unchanged.

Monthly contracts will still expire on the last Thursday of the respective expiry month, while quarterly contracts will follow the established cycles of March, June, September, and December.

Initially, there were plans to shift the expiry day of the Bank Nifty weekly contract to Friday. However, these plans were subsequently abandoned due to potential conflicts with the expiry dates of BSE’s Sensex and Bankex derivatives contracts. This marks the second time that the NSE has announced a change in the expiry date of Nifty Bank derivative contracts.

Nifty has also announced the changes in Nifty Midcap Select Index. In order to prevent a scheduling conflict with the Nifty Midcap Select index, which also has its derivative contracts expiring on Wednesdays, the NSE has decided to reschedule both its weekly and monthly contracts to Mondays.

The first Monday expiry for the midcap index will be on August 21, 2023. If Monday is a trading holiday, then the expiry day is the previous trading day.

As of the time of writing this article, the Nifty Bank is trading at approximately 44,930, while the Nifty Midcap Select is trading at around 8,324 levels.

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.