The National Stock Exchange of India on Tuesday said it had withdrawn its plan to shift the expiry of its Nifty Bank derivative contracts to Friday from Thursday. The shift was to be effective from July 7, with all existing contracts with Thursday expiry revised to Friday at the end of July 6. The first Friday expiry was to be on July 14.The change would have meant four weekly expiries at NSE — Nifty Financial Services expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday and Nifty Bank on Friday.
BSE had shifted the expiry day of Sensex and Bankex option contracts to Friday with effect from May 12.“The proposed Friday expiry of Bank Nifty coincides with the expiry of the Sensex/ Bankex F&O contracts that were relaunched by BSE with effect from May 15, 2023. BSE, based on market feedback feels that this can potentially impact the growth of Sensex/Bankex derivatives,” the exchanges NSE and BSE said in a joint statement.
“Considering the need for balanced market development and avoidance of concentration risk in the market, the BSE has requested the NSE to consider shifting of the Bank Nifty expiry to any day other than Friday. This will help in growing this complementing Sensex/Bankex derivatives and thus de-risk the market,” the note added. The BSE derivatives segment posted the highest ever turnover of over `6 trillion on June 23. The was a jump of 77% from previous week’s expiry turnover of `3.42 trillion. A total of 96.11 lakh contracts were traded last week, with a total open interest peak of 4.93 lakh contracts before expiry.The BSE said it would continue to strive hard in its endeavour to continue and provide innovative and complimentary products to the market.