NSE shifts F&O expiry to Mondays: Anil Singhvi suggests traders take note of these changes

The National Stock Exchange (NSE) has announced a major change in the expiry schedule of equity derivative contracts, moving expiry days from Thursday to Monday, effective 4 April 2025. Market expert Anil Singhvi weighed in on the impact, noting that the move could reduce competition and impact BSE’s Sensex weekly expiry volume.

Key changes in NSE’s F&O expiry schedule

• New expiry day: All weekly and monthly expiry contracts for Nifty 50, Bank Nifty, FinNifty, Nifty Next50, and Nifty Midcap Select will now expire on Mondays.
• Monthly contracts: The monthly expiry will now fall on the last Monday of the expiry month.
• Stock derivatives: The expiry for stock derivatives will also shift to the last Monday of each month.
• Effective date: The change takes effect from 4 April 2025, with existing contracts adjusted accordingly by 3 April 2025.
• No changes to contract specifications: Apart from the expiry date, all contract details will remain unchanged.

Anil Singhvi’s take: Why did NSE change expiry day?

According to Singhvi, the shift in expiry day may be an attempt by NSE to reduce competition. BSE’s Sensex weekly expiry volume has been increasing, leading to a re-rating of BSE’s market valuation. By moving its expiry to Monday, NSE could regain some of the futures trading share.

“While the expiry day shift is significant, it may not cause major disruptions. BSE might respond by changing its expiry to Thursday or Friday,” Singhvi added.

Market impact: What traders should expect

• Impact on trading volumes: With expiry falling on Mondays, traders might witness volatility at the beginning of the trading week instead of midweek.
• Liquidity shifts: The shift could impact liquidity patterns, especially for Bank Nifty and FinNifty traders who rely on midweek expiry trends.
• BSE’s response: If BSE follows suit with a shift in its own expiry dates, it could maintain its growing market share in derivatives.

The change in expiry day is a strategic move by NSE, aimed at streamlining trading processes while potentially challenging BSE’s growing derivatives market. With the implementation set for April 2025, traders will need to adjust their strategies to align with the new Monday expiry schedule.