NSE scraps plan to shift Nifty Bank F&O expiry to Friday
Based on market feedback, BSE felt that NSE’s move could potentially impact the growth of Sensex/Bankex derivatives.
JUNE 27, 2023 / 07:17 PM IST
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Following the relaunch of the indices, the National Stock Exchange (NSE) has reversed its decision to shift the expiry of Nifty Bank derivative contracts from Thursday to Friday.
Initially, NSE had made this decision in response to the Bombay Stock Exchange’s (BSE) move to shift the expiry of Sensex and Bankex derivative contracts to Friday from Thursday. However, NSE has now withdrawn its plan to align with BSE’s schedule.
Based on market feedback, BSE felt that NSE’s move could potentially impact the growth of Sensex/Bankex derivatives.
A joint statement from the exchange said, "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. "
To foster market development, the NSE made the decision to withdraw its proposal with effect immediately.
The BSE believed that shifting the expiry of Nifty Bank to a day other than Friday would contribute to increased participation in Sensex and Bankex derivatives. BSE’s perspective was that this change would help in mitigating risks within the market.
Earlier this month, NSE had planned to move the expiry of Nifty Bank derivative contracts to Friday from Thursday starting mid-July, following BSE’s similar move for Sensex and Bankex indices from May 12.