The National Stock Exchange (NSE) has received capital market regulator Sebi's nod for Tuesday as its expiry day, according to a company filing on June 16, while BSE has confirmed that its expiry day proposal for Thursday has been accepted.

The communication from the regulator has been conveyed to both the exchanges.

BSE and NSE said in their communications that for existing contracts, they intends to keep the expiry day unchanged for already introduced contracts, with the exception of long-dated index options contracts, which will be suitably realigned to expiry day. Derivative contracts which expire on or before August 31, 2025 will continue with the present expiry day, while contracts of BSE and NSE that are to expire after September 1, 2025 will see their expiry day change to Thursday and Tuesday, respectively.

The Metropolitan Stock Exchange too has received Tuesday as its expiry day, whenever it decides to launch its derivative expiry contracts, sources told Moneycontrol.

Rohit Srivastav, Founder and Market Strategist at Indiacharts.com says, “When there's an options expiry on a Tuesday, two things happen from the perspective of an options buyer. The weekend becomes an unfavourable period to hold an option due to time decay. So, most buyers are unlikely to hold their positions until expiry—they typically square off by Friday”. He is also of the view that, Thursday expiry is more favourable for positional traders. They can hold positions over a few days without worrying about weekend time decay.

Another market participant explained that, the only people likely to trade on Monday or Tuesday are day traders. These include those who trade one-day expiries or follow "hero to zero" strategies. That's probably what NSE is counting on—generating more intraday volatility and trading volume on those days.

On Stock Broking Industry insider says, “NSE wanted Tuesday which they got, this will give them one additional day”.

The proposals were discussed at a meeting of Sebi's Secondary Market Advisory Committee (SMAC), which was working on finalising rules for expiry days across exchanges.

In November 2024, NSE had said it planned to move expiry of index derivative contracts to Thursday, but in March, the exchange surprisingly said it would seek Monday as expiry, ahead of BSE. The latest communication from the regulator has put the expiration to Tuesday and Thursday, as was mentioned in the March 27 draft circular. Sebi Chairman Tuhin Kanta Pandey had hinted on May 22 that the market regulator will come up with a circular on F&O expiry day in a month's time.

The shift of NSE's expiry day from Thursday to Tuesday is expected to help the exchange regain market share from rival BSE. Derivatives trading makes up a large part of the revenue for both stock exchanges. NSE handles the highest number of derivatives contracts globally, and was reportedly seeking to change its expiry date to Tuesday from Thursday, in an effort to reclaim market share from BSE at a time when the regulator has been nudging both exchanges to curb excessive trading.

For BSE, its FY25 revenue growth was led by strong volumes in Sensex derivatives product, as it expanded the client base and drove higher non-expiry day activities. BSE's equities turnover has shown strong activity in the first half of FY25, resulting in average daily turnover of Rs 7,766 crore versus Rs 6,622 crore in the previous year. BSE's Index Derivatives segment sustained growth during March quarter with highest-ever average daily premium turnover of Rs 11,782 crore for the quarter.