BSE changes expiry day for single stock derivatives, effective July 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay Stock Exchange (BSE) on Tuesday (April 30) said it has altered the expiry day for single stock derivatives, set to be implemented from July 1, 2024.

In a recent announcement, the BSE highlighted that the expiry day for monthly contracts of single stock derivatives will now be shifted to the second Thursday of each calendar month. Trading members have been advised to refer to previous notices issued by the exchange regarding changes in the expiry day of stock derivatives.

As per the latest directive, existing monthly contracts of stock derivatives in the equity derivatives segment with an expiry day scheduled as the last Thursday of the calendar month (adjusted for holidays) will expire on June 28, 2024. Subsequently, these contracts will be removed from the contract master file, rendering them unavailable for trading from July 1, 2024, onwards.

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“All the existing monthly contracts of Stock Derivatives in the equity derivatives segment with expiry day as the Last Thursday of the Calendar Month (if Thursday is a holiday then the previous working day) will get expired on June 28, 2024, and will be removed from contract master file at end of day of June 28, 2024. These contracts will not be available for trading from Monday, July 01, 2024,” the BSE said.

In preparation for the transition, new contracts of stock derivatives featuring three serial monthly expiries will be generated on June 28, 2024, at the end of the day.

“New contracts of stock derivatives with three serial monthly expiries with expiry day as 2nd Thursday of the Calendar Month (if Thursday is a holiday then the previous working day) will be generated on June 28, 2024 end of day in the equity derivatives segment for trading with effect from July 01, 2024,” the BSE added.

It’s worth noting that this change applies solely to the expiry day of monthly contracts of single stock derivatives, with no adjustments to the expiry day of any other contracts within the equity derivatives segment.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow