The Securities and Exchange Board of India (“SEBI”) in exercise of powers conferred under Section 11(1) read with Section 11(2)(a) of the Securities and Exchange Board of India Act, 1992, vide Circular No. SEBI/HO/MRD/MRD-TPD-1/P/CIR/2025/76,[1] dated May 26, 2025, issued a circular rationalizing the expiry days for equity derivatives contracts.
This regulatory action follows public consultation initiated through a consultation paper dated March 27, 2025, and deliberations in SEBI’s Secondary Market Advisory Committee (SMAC).
Key Regulatory Changes:
- Uniform Expiry Days: All equity derivatives contracts on any exchange shall now have expiry days limited to either Tuesday or Thursday.
- Weekly Benchmark Index Options: Each exchange may continue to offer 1 (one) weekly benchmark index options contract on its chosen expiry day (either Tuesday or Thursday).
- Monthly Expiry of Other Contracts: All other equity derivatives contracts, including, benchmark index futures, non-benchmark index futures and options, single stock futures and options, shall be offered with a minimum tenor of 1 (one) month. These contracts must expire in the last week of each month on the exchange’s chosen expiry day (i.e., last Tuesday or last Thursday of the month).
- Approval for Changes in Expiry Day: Any modification to the expiry day of derivatives contracts by an exchange shall now require prior approval from SEBI.
- Stock exchanges have been directed to submit their proposals to SEBI in line with Clause 3 above by June 15, 2025.
[1]https://www.sebi.gov.in/legal/circulars/may-2025/final-settlement-day-expiry-day-for-equity-derivatives-contracts_94189.html