NSE Changes Nifty Bank F&O Expiry to Friday; Here’s What You Need to Know


Last Updated: June 06, 2023, 12:26 IST

Bank Nifty F&O Friday Expiry: Bank Nifty Futures and Options (F&O) expiry day has been changed from Thursday to Friday, said NSE. The new rule will come into effect from July 14.

In a circular issued on Tuesday, India’s largest derivative bourse NSE said, “The above shall be effective from trade date July 7, 2023 Friday and accordingly, all existing contracts with Thursday expiry will be revised to Friday on July 6, 2023 EOD. The first Friday expiry will be on July 14, 2023,”

However, if Friday is a trading holiday, then the expiry day is the previous trading day.

With this change, NSE will now have an F&O expiry on every day of the week barring Monday, with effect from the week starting July 9.

There is the Nifty Financial expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday and now Bank Nifty on Friday.

What does It mean?

Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “The NSE’s decision to shift the expiry of Bank Nifty to Friday can be viewed from two perspectives. Firstly, BSE F&O contracts, which already expire on Friday, have gained popularity among traders due to lower charges compared to NSE. To counter this competition, NSE introduced the idea of shifting the expiry day. Secondly, NSE’s previous successful experiment with the Finnifty’s new expiry day may have influenced this decision. However, it’s important to note that expiry alone may not be the sole factor determining attractiveness; transaction charges will also play a significant role, especially considering the appeal of BSE Sensex F&O contracts.”

Aparna DebAparna Deb is a Subeditor and writes for the business vertical of News18.com. Among other things, financial market, economy and policies interest her …Read More

Source: www.news18.com


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