Bank Nifty F&O Friday Expiry: Bank Nifty Futures and Options (F&O) expiry day has been changed from Thursday to Friday, said NSE. The new rule will come into effect from July 14.
In a circular issued on Tuesday, India’s largest derivative bourse NSE said, “The above shall be effective from trade date July 7, 2023 Friday and accordingly, all existing contracts with Thursday expiry will be revised to Friday on July 6, 2023 EOD. The first Friday expiry will be on July 14, 2023,”
However, if Friday is a trading holiday, then the expiry day is the previous trading day.
With this change, NSE will now have an F&O expiry on every day of the week barring Monday, with effect from the week starting July 9.
There is the Nifty Financial expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday, and now Bank Nifty on Friday.
What does It mean?
Bank Nifty existing weekly contracts will expire on Friday of every week and monthly contracts will expire on the last Friday of the respective contract month. Any new contract created for trading on/after the end of the day on July 06, 2023, shall be created as per the revised expiry days. The settlement schedule will be intimated separately by Clearing Corporations. NSE further advise traders to take the updated contract.gz file available on the extranet path faoftp/faocommon before trading on July 07, 2023.
At present, Nifty Bank’s weekly contracts expire every Thursday, while monthly and quarterly contracts expire on the last Thursday of the expiry month. With this change, NSE will now have an F&O expiry on every day of the week except Monday, with effect from the week starting July 9. There is the Nifty Financial expiry on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday and now Bank Nifty on Friday.
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “The NSE’s decision to shift the expiry of Bank Nifty to Friday can be viewed from two perspectives. Firstly, BSE F&O contracts, which already expire on Friday, have gained popularity among traders due to lower charges compared to NSE. To counter this competition, NSE introduced the idea of shifting the expiry day. Secondly, NSE’s previous successful experiment with the Finnifty’s new expiry day may have influenced this decision. However, it’s important to note that expiry alone may not be the sole factor determining attractiveness; transaction charges will also play a significant role, especially considering the appeal of BSE Sensex F&O contracts.”
Meanwhile, after the announcement, Bank Nifty dipped 48 points or 0.11% to 44,053.40 and NSE Nifty 50 fell 39.50 points or 0.21% to 18,554.35. The top losers on Bank Nifty were AU Bank, Federal Bank, PNB, IDFC First Bank and Bank of Baroda while the gainers were Kotak Bank, Axis Bank and IndusInd Bank.
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