BSE Loses to NSE in Derivatives Market After Latter Shifts Weekly Expiry to Tuesday

The National Stock Exchange (NSE) regained strength in the derivatives market in September after months of decline. Thanks to the new Tuesday expiry schedule, NSE’s market share rose to 61.9%. The exchange also saw a sharp 14% rise in average daily turnover to ₹270 lakh crore, compared to smaller gains of 3.3% in July and 5.4% in August.

BSE Faces Decline

 The Bombay Stock Exchange (BSE), however, reported a setback. After three straight months of growth, BSE’s turnover fell 6.6% in September to ₹166 lakh crore. This is widely attributed to the shift in expiry, as the earlier expiry schedule had favoured BSE with more trading days between cycles.

Overall Turnover Rises

Despite BSE’s decline, the combined turnover of both exchanges grew strongly. From 22 trading sessions in September, NSE recorded ₹5,942 lakh crore, while BSE posted ₹3,651 lakh crore. Together, this marked a 22% month-on-month growth in total turnover.

Impact of SEBI’s Rules on BSE

In May, the Securities and Exchange Board of India (SEBI) restricted weekly expiries to just two days and asked each exchange to select one. Before this change, BSE benefited from three working days between expiries, compared to NSE’s two. News reports suggest that BSE could face a 5–15% fall in trading volumes due to the new rule. However, its focus on longer-term contracts may help balance this impact.

BSE Share Price Performance and Market View

BSE share price dropped by about 5% in September after reports that SEBI might reduce the number of weekly expiries even further. News reports suggest that trading volumes on expiry days may take some time to settle into a stable pattern.

With more investors, including those from abroad, joining the market, new ways of trading are expected to develop. Many smaller company stocks are already seeing active participation, so finding the right price for them is not expected to be a problem.

Read more: ITR Refund for FY25: Wrong Tax Deduction Claims Can Cost You 5x More.

Conclusion

The Tuesday expiry has clearly given NSE an edge, helping it recover lost ground. While BSE struggles in the short term, its ability to build liquidity in longer-term contracts could support its future growth. The derivatives market is likely to see more adjustments as both exchanges adapt to the new expiry rules and rising investor participation.  
 
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