“Reformation in the Bank Nifty Derivatives category will be effective from Friday, July 7, 2023. All Bank Nifty F&O contracts expiring on a Thursday will be revised to fix Friday as the new expiry date on July 6. Thereafter, the first day of expiry will be July 14, 2023,” NSE released. mentioned in the circular. If Friday falls on any public holiday, the expiry shall be postponed to the next preceding business day.
As per the existing rules of the exchange, Bank Nifty’s F&O contracts expire on Thursdays. Weekly contracts have their expiry date on Thursdays and monthly contracts have their expiry date on the last Thursday of the month. From mid-July onwards, the expiry date for NSE’s Bank Nifty contracts will be Friday.
From July 6, the expiry date and maturity date of all existing F&O contracts will be revised to Friday. All existing F&O contracts with expiry date of July 13 will be rescheduled to July 14. Likewise all contracts maturing on the last Thursday of the month will be rescheduled. As part of this, the expiry of monthly contracts expiring on 31st August (Thursday) will be rescheduled to 25th August. Clearing Corporations will publish adjusted settlement schedules on the new expiry day.
Meanwhile, the rival Bombay Stock Exchange (BSE) has shifted the expiry date of derivative contracts of Sensex and Bankex indices from May 12 to Friday. Bankex also revised the lot size of index contracts. The move was aimed at attracting traders from the NSE, which dominates the derivatives market. With this, the NSE has come up with the process of revising the expiry date of the most traded Bank Nifty contracts.
Earlier, the expiry day of Nifty Midcap Select Index was shifted from Tuesday to Wednesday. The Nifty Midcap Select Index is composed of 25 stocks that are part of the Nifty Midcap 150 index. On the other hand, the expiry day of the contracts that are part of Nifty Financial Services or Finnifty (FINNIFTY) index is Tuesday.
