Last month, the National Stock Exchange announced a modification concerning the expiry days for futures and options contracts of the Nifty Bank Index.
Nifty Bank weekly index options will experience a change in their expiry day, transitioning from Thursday to Wednesday starting on September 4, which falls on a Monday. The initial Wednesday weekly expiry for Nifty Bank will occur on September 6 (Wednesday).
As outlined in the circular issued by the NSE, all weekly contracts will henceforth reach their expiration on Wednesdays of each week, except for the expiry week of the monthly contract.
The NSE also clarified that if a Wednesday happens to be a trading holiday, the expiry day will be the previous trading day.
It must be noted that the announced changes specifically relate to the expiry day of Bank Nifty’s weekly contracts. However, the expiry days for monthly and quarterly contracts will remain unaffected. Monthly contracts will continue to expire on the last Thursday of the respective expiry month, while quarterly contracts will follow the established cycles of March, June, September, and December.
Previously, the NSE had decided to move the expiry of Nifty Bank from Thursday to Friday. Nevertheless, the NSE reversed this decision to shift the Nifty Bank derivative contracts’ expiry to Friday from Thursday.
This decision came after BSE adjusted the expiry of Sensex and Bankex derivative contracts to Friday following the relaunch of the indices. In a joint statement, the exchanges expressed, “Considering the need for balanced market development and the avoidance of concentration risk in the market, BSE has requested NSE to consider shifting the Bank Nifty expiry to any day other than Friday.
|Expiry||Current Expiry Day||Revised Expiry Day|
|Weekly Contracts||Thursday of every week excluding the expiry week of the monthly contract||All weekly contracts shall expire on Wednesday of every week excluding the expiry week of the monthly contract & if Wednesday is a trading holiday, then the expiry day is the previous trading day.|
|Monthly & Quarterly Contracts||Last Thursday of the expiry month||No change in expiry day|