Shares of BSE Ltd, formerly the Bombay Stock Exchange, shot up as high as ₹5,519 apiece or 17.81 per cent on Friday morning trade at the NSE, after market regulator SEBI proposed limiting equity derivatives contract expiries to Tuesdays or Thursdays.
Following a recent consultation paper by the Securities and Exchange Board of India (SEBI), the National Stock Exchange (NSE) decided not to go ahead with its initial plan to change the expiry date of index and stock derivatives to Monday.
“Members are required to note that the implementation of this circular is deferred until further notice in view of SEBI consultation paper dated March 27, 2025, on final settlement day (expiry day) for equity derivatives,” NSE stated.
The circular the market body referred to here was the one posted earlier in March, announcing a change in expiry dates. The NSE was looking to shift the expiry of Nifty weekly contracts from Thursdays to Mondays. Moreover, the expiries of Nifty monthly, quarterly, and half-yearly contracts were also scheduled to shift from the last Thursday of the expiry month to the last Monday.
The NSE deferring the move until further notice seemed to have added more certainty to the market, with SEBI noting that all expiries of equity derivative contracts across exchanges are better if uniformly limited to either Tuesdays or Thursdays.
However, the BSE contract expiry dates are Tuesday, which means that the NSE would have to stick to Thursday. This could potentially give BSE a ‘time decay’ benefit. This means that an earlier BSE date could potentially help investors determine the growth trajectory of options. Moreover, the extrinsic value of options closer to expiry dates is much lower.
Adding to the positive news for BSE is the impending board meeting on Sunday, where a proposal on bonus shared of BSE Ltd is set to be tabled. If approved, it could mean the second time bonus shares were issued since 2022. Moreover, a dividend announcement is also expected, adding to the mounting demand for BSE Ltd shares.
BSE share price consistently traded between a 15 per cent and 16 per cent hike on average throughout the noon session.