NSE Reschedules Nifty Bank F&O Expiry To Fridays: Here's What You Need To Know

The National Stock Exchange of India (NSE), India’s largest derivative exchange, has announced a change to the futures and options (F&O) expiry schedule for ‘Nifty Bank’ — a sectoral index that consists of top companies across the country’s private, public banking sector. The NSE will shift the F&O expiry date from Thursday to Friday, starting from July 14.

What Happened? In a statement, NSE explained that they would extend all existing contracts, originally set to expire on Thursday, to Friday starting from July 7, 2023. This change will begin on July 6, 2023. The first Friday expiry would occur on July 14, 2023.

As per the old rules, Nifty Bank’s weekly contracts were set to expire every Thursday. The last Thursday of the expiry month marked the expiry of monthly and quarterly contracts. However, beginning mid-July, NSE will adjust the weekly expiry to Friday. If Friday is a holiday, the expiry will be on the previous trading day.

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For monthly contracts of the Nifty Bank in the derivative segment, the expiry will now be the last Friday of the month.

On July 6, NSE will adjust the expiry and maturity dates of all existing F&O contracts to Friday. Contracts due to mature on July 13 (Thursday) will now expire on July 14 (Friday). Contracts set to mature on the last Thursday of the month, i.e., August 31 (Thursday), will now expire a week earlier on August 25 (Friday).

NSE concluded that any new contract made after the close of trading on July 6, 2023, would follow the revised expiry dates. NSE advised members to note that all other details regarding the Nifty Bank contracts will stay the same.

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Posted In: GovernmentRegulationsFuturesMarketsF&ONSE