NSE withdraws plan to move Nifty Bank derivative contracts to Friday

Nifty Bank expiry day change: The National Stock Exchange (NSE) on Tuesday scrapped its plan to shift expiry day for Future & Options (F&O) contracts of Nifty Bank to Friday from Thursday. This came after rival exchange BSE requested NSE to consider shifting the Nifty Bank expiry to any day other than Friday for balanced market development.

Earlier this month, NSE moved the expiry day for Nifty Bank derivative contracts to Friday from Thursday, which was to be effective from July 7. The first Friday expiry was scheduled for July 14. The proposed Friday expiry of Bank Nifty coincided with the expiry of the Sensex/ Bankex F&O contracts that were relaunched by BSE on May 15, 2023.BSE, based on the market feedback, felt the NSE's decision could have potentially impacted the growth of Sensex/Bankex derivatives.

"Considering the need for balanced market development and avoidance of concentration risk in the market, BSE has requested NSE to consider shifting 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 two exchanges said in a joint statement. Subsequently, NSE, in the interest of market development has decided to withdraw its plan with immediate effect, the statement noted.

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