Capital market regulator SEBI has said that the termination of all equity derivatives in the stock markets will be limited to Tuesday or Thursday. This will help to adapt the interval between the days of futures and options (F&.O) and avoid marking the first or the last day as the end of the end. Currently NSE has selected on Thursday and BSE on Tuesday for F&O end.
The Securities and Exchange Board of India (SEBI) said in a circular that the stock market will now have to take SEBI approval before starting or changing the termination or disposal date of any contract. According to SEBI, having too much finish day for a contract can lead to over -activation associated with it, which can endure investors’ safety and market stability.
Keeping all these aspects in mind, the termination of all equity futures and option contracts of any exchange will be limited to Tuesday or Thursday. The exchange will continue to allow a weekly benchmark index option contract any day of these two days.
In addition, all benchmark index option contracts, all other equity derivative contracts such as all benchmark index futures contracts, non-Benchmark index futures/option contracts, and all single stock futures/option contracts will be offered with a minimum period of 1 month. The termination will take place on the last week of every month on the last Tuesday or last Thursday of the month.
Exchange submit your proposal by June 15
SEBI has asked the stock markets to submit its proposal for the implementation of this structure by June 15. In early March, SEBI proposed in a consultation that the expiry of all futures and option contracts on the exchange should be limited to Tuesday or Thursday. After this, the National Stock Exchange (NSE) postponed its plan to transfer the end of all index and stock derivatives from Thursday to Monday. This change was to be implemented from April 4, 2025.
