NSE wants weekly expiry on Tuesday, writes to SEBI

India's market regulator, the Securities and Exchange Board of India (SEBI), is expected to approve Tuesday as the expiry day for the National Stock Exchange (NSE), according to sources familiar with the matter reported by CNBC-TV18. It is anticipated that SEBI will soon issue a circular outlining the index expiry days for exchanges, with the NSE likely having applied for Tuesday as its designated expiry day.

Recently, SEBI's Secondary Market Advisory Committee (SMAC) convened to discuss the rules regarding expiry days for exchanges. Currently, contracts on the Bombay Stock Exchange (BSE) expire on Tuesday, while those on the NSE expire on Thursday.

In March, SEBI issued a consultation paper suggesting that exchanges should consider utilizing Tuesday and Thursday as expiry days. Sources indicate that if the NSE is granted Tuesday as its expiry day, it could negatively impact the BSE, with a possible 20% decline in Sensex options volumes as a significant portion may shift to the NSE. Moreover, if the NSE successfully adopts Tuesday for its weekly expiry, its market share in index options could increase by nearly 5%, according to these sources.

In response to inquiries from reporters, SEBI Chairman Tuhin Kanta Pandey stated that the regulator will be issuing directives on expiry dates this month, following the review of comments received on the consultation paper.​