NCDEX decides to opt out of the current contest for expiry days.
The National Commodity & Derivatives Exchange Ltd (NCDEX) does not plan to apply for a weekly expiry day under SEBI’s recent directive requiring exchanges to choose between Tuesday or Thursday for contract expiries by June 15, according to sources.
“We do not plan to participate in the current deadline for choosing expiry days. Whenever we finalise launching a weekly expiry, we will separately apply to SEBI,” a source directly aware of the matter said.
The choice of expiry day will depend on the competitive setup at the time of the launch and the days chosen by other stock exchanges, the source said.
In a move aimed at reducing hyperactivity and concentration risk on expiry days, the market regulator recently mandated all equity derivatives contracts across stock exchanges to be restricted to just two days in a week — Tuesdays and Thursdays.
Exchanges have been asked to submit their proposals to SEBI by June 15, and will now need explicit approval from the regulator before launching or modifying any contract expiry or settlement schedule.
NCDEX’s decision to opt out of the current contest for expiry days comes even though its board had, at its 155th meeting in February, approved a plan to foray into the equity and equity derivatives market. The agri-commodity exchange is looking to diversify beyond agricultural contracts with an estimated investment of ₹400–₹600 crore.
An email sent to NCDEX did not elicit a response.
Earlier, the exchange along with the Metropolitan Stock Exchange of India (MSE) had made a case against the limitation of expiry days, and to instead allow a dedicated expiry day for each exchange. The two had sought a temporary exemption to pick a different expiry day from the ones already in use, to aid their initial growth and competitiveness, another source aware of the discussions said.
MSE and NCDEX had argued that if the two established exchanges adopt different expiry days, it could limit the flexibility available to a new entrant, creating an uneven playing field and posing challenges in attracting market participation.
Further, such structural rigidity may restrict the scope for product innovation by exchanges, potentially affecting their ability to tailor offerings based on market demand, they said. Prescribing fixed expiry days could reduce the ability of exchanges to adapt quickly to evolving global developments or shifts in trading patterns, risk management and flexibility in strategy, the exchanges had pitched.
Currently, NSE’s derivatives contracts expire on Thursdays, BSE’s contracts expire on Tuesdays, while those of MSE expire on Fridays. With NCDEX bowing out of the selection process, the three participating exchanges will now have to align with either Tuesday or Thursday for their equity derivative products.
Published on June 5, 2025