NSE Revises F&O Expiry Days: Monthly, Quarterly, and Weekly Contracts Shift to Monday

The National Stock Exchange of India (NSE) has announced a major change in the expiry schedule of futures and options (F&O) contracts across multiple indices. 

According to a circular issued on Tuesday, the expiry days for monthly, quarterly, and weekly contracts of key indices such as Nifty, Bank Nifty, FinNifty, Nifty Midcap Select, and Nifty Next50 have been moved to the last Monday of the expiry month. These changes will come into effect from April 4, 2025.

Changes in Expiry Schedule

Currently, F&O contracts expire on the last Thursday of each expiry month. However, from April 2025, the expiry will shift to the last Monday. Additionally, the expiry of Nifty weekly contracts has been moved from Thursday to Monday, while the half-yearly contracts of Nifty will also follow the same shift. 

NSE clarified that there are no other changes in the contract specifications, and details regarding the settlement schedule will be communicated separately by Clearing Corporations.

Regulatory Reforms and Market Impact

These changes follow previous adjustments made by NSE on January 1, 2025, when expiry days for various contracts were aligned to Thursday. 

Prior to that, Bank Nifty’s monthly and quarterly expiry was on Wednesday, FinNifty on Tuesday, Nifty Midcap Select on Monday, and Nifty Next50 on Friday. A significant regulatory move in October 2024 by SEBI had already restricted exchanges to offering only one weekly F&O contract per index.

This realignment comes amid concerns over the increasing participation of retail investors in options trading. A study conducted by SEBI revealed that between 2021 and 2024, 9 out of 10 individual traders faced losses, with total losses exceeding ₹1.8 lakh crore. The average loss per trader stood at ₹2 lakh, while the top 3.5% loss-makers incurred an average loss of ₹28 lakh each. The study also noted a sharp rise in younger traders, with the percentage of those under 30 increasing from 31% in FY23 to 43% in FY24.

Conclusion

The revised F&O expiry schedule marks a significant shift in market operations, aligning all key contracts to a uniform expiry day. This decision is part of broader regulatory changes aimed at managing the risks associated with derivatives trading. The impact of these changes will unfold in the coming months as market participants adjust to the new structure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.