Big Change! NSE Shifts Nifty, Bank Nifty F&O Expiry to Mondays Starting April 4

In a significant update for traders and investors, the National Stock Exchange (NSE) has announced a change in the expiry schedule for Futures & Options (F&O) contracts of key indices. As per a circular issued today, the expiry day for derivatives contracts on Nifty 50, Bank Nifty, Nifty Financial Services (FinNifty), Nifty Next 50, and Nifty Midcap Select will be shifted from Thursday to Monday, starting April 4, 2025.

This change marks a major shift in the derivatives trading landscape, as the Thursday expiry has been the norm for these indices. The revised schedule is expected to impact trading strategies, liquidity patterns, and market dynamics. However, NSE has not specified any changes in contract specifications apart from the expiry shift.

Market participants, including traders, investors, and institutions, will need to adapt to this new settlement cycle once it takes effect next year. More details regarding the transition and its implementation are expected to be provided by NSE in due course.

In addition to shifting the weekly expiry for index derivatives, the National Stock Exchange (NSE) has also revised the monthly expiry schedule for all the affected contracts. Under the new framework, the monthly expiry for Nifty 50, Bank Nifty, Nifty Financial Services (FinNifty), Nifty Next 50, and Nifty Midcap Select will now take place on the last Monday of the expiry month, replacing the existing last Thursday schedule.

Furthermore, the weekly expiry for Nifty 50 options and futures contracts has also been rescheduled. Going forward, Nifty’s weekly contracts will now expire on Mondays instead of Thursdays, aligning with the broader shift in expiry days across multiple indices.

Apart from index derivatives, stocks in the F&O segment will also undergo a similar change. Their monthly expiry, which currently falls on the last Thursday of each month, will be moved to the last Monday of the month.

These changes, set to take effect from April 4, 2025, will require traders, investors, and market participants to adjust their trading and risk management strategies accordingly. NSE is expected to provide further operational details as the transition date approaches.

This significant change in the expiry schedule comes shortly after Tuhin Kanta Pandey took over as the new Chairman of the Securities and Exchange Board of India (SEBI). His appointment marks the beginning of a new leadership era at SEBI, the regulatory body overseeing the securities and commodities markets in India.

The timing of this decision has drawn attention, as it comes just days after Pandey assumed office. While NSE has not explicitly linked the expiry shift to the leadership transition, the move signals a potential shift in market regulation and operational strategies under the new chairman’s tenure. Market participants will be closely watching for further regulatory updates and policy directions in the coming months.

Earlier, the National Stock Exchange (NSE) had announced changes to the expiry schedule for certain Futures & Options (F&O) contracts following the discontinuation of their weekly contracts. Specifically, the weekly contracts for Bank Nifty, Nifty Financial Services (FinNifty), Nifty Midcap Select, and Nifty Next 50 were scrapped, leading to an adjustment in their monthly expiry dates.

As per this adjustment, effective January 1, 2025, the monthly expiry for these four indices was set to take place on Thursdays. This change was implemented to streamline the derivatives trading framework for these indices after the removal of their weekly options.

The latest revision in expiry schedules, which moves the monthly expiry for these contracts to Mondays, comes as a partial modification to NSE’s November 29, 2024 circular and the consolidated circular issued on April 29, 2024. These continuous refinements in the contract expiry structure reflect NSE’s efforts to optimize the derivatives market in response to evolving trading dynamics and market participant feedback.

According to the latest circular issued by the National Stock Exchange (NSE) today, details regarding the revised expiry dates for all existing derivatives contracts will be updated in the contract file. This updated contract file will be generated at the end of the trading day on April 3, 2025.

The revised expiry dates mentioned in this file will officially come into effect for trading from April 4, 2025, onwards. Market participants, including traders and investors dealing in Futures & Options (F&O) contracts, will need to refer to this updated file to stay informed about the new expiry schedules.

This update is part of NSE’s broader effort to transition to the newly announced Monday expiry framework, replacing the current Thursday expiry for multiple index and stock derivatives. The exchange is expected to provide further details to ensure a smooth transition for all stakeholders.

In November 2024, the Bombay Stock Exchange (BSE) announced a revision in the expiry schedule for its key derivatives contracts. As part of this change, the monthly expiry for Sensex, Bankex, and Sensex50 Futures & Options (F&O) contracts was shifted to the last Tuesday of every month. This adjustment officially came into effect from January 1, 2025.

Additionally, BSE also aligned its weekly expiry schedule with this update. As a result, the weekly contracts for Sensex derivatives now expire on Tuesdays. This move was aimed at bringing consistency to the exchange’s derivatives segment and optimizing trading activity.

These modifications in expiry schedules by BSE reflect ongoing efforts to refine the derivatives market structure and enhance participation by providing a well-defined and predictable trading framework.

The Indian stock markets continued their downward trend on Tuesday, extending their losing streak as investors remained cautious. The benchmark indices Nifty 50 and BSE Sensex ended the session in the red, reflecting persistent selling pressure in the market.

The Nifty 50 index suffered its 10th consecutive decline, marking its longest losing streak since its inception in 1996. The index closed at 22,082.65, slipping 36.65 points or 0.17% from its previous session. Meanwhile, the BSE Sensex also recorded its third straight day of losses, falling by 96.01 points or 0.13% to settle at 72,989.93.

Despite a gap-down opening, there were signs of resilience in Nifty’s performance throughout the day. Rupak De, Senior Technical Analyst at LKP Securities, noted that the index found strong support around the 22,000 level, preventing a deeper decline. While the overall sentiment remains cautious, he pointed out that the index is forming a support zone between 21,800 and 22,000.

According to De, in the short term, there could be a potential recovery, provided the support levels hold. However, he also warned that a decisive breakdown below 21,800 could alter the current market structure and lead to further weakness.

Market participants will be closely monitoring these levels in the coming sessions to gauge the next trend in the indices.