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SEBI Notifies Uniform Expiry Days for Equity Derivatives to Enhance Market Stability [Read Circular]

SEBI mandates uniform expiry days�Tuesday or Thursday�for all equity derivatives contracts across stock exchanges

Kavi Priya
SEBI circular 2025 - Equity derivatives expiry - SEBI expiry rules - taxscan
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SEBI circular 2025 – Equity derivatives expiry – SEBI expiry rules – taxscan

The Securities and Exchange Board of India (SEBI) issued a Circular dated May 26, 2025, announcing a new framework that limits the final settlement (expiry) days for equity derivatives contracts to either Tuesday or Thursday for all recognized stock exchanges.

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This move aims to reduce the risks associated with multiple expiry days across exchanges and to ensure market stability and investor protection while still allowing exchanges limited flexibility to differentiate their products.

Key Highlights of the Circular:

  1. Uniform Expiry Days: All equity derivatives contracts on an exchange will now expire only on Tuesday or Thursday, a shift from the current system where exchanges could set different days.

  2. Weekly Index Options: Each exchange may continue to offer one weekly benchmark index options contract expiring on its selected day.

  3. Monthly Expiry Rule for Other Contracts: Other contracts such as:

  4. Benchmark index futures,
  5. Non-benchmark index options/futures, and
  6. Single stock derivatives must have a minimum one-month duration and expire on the last Tuesday or last Thursday of the month.

  7. SEBI Approval for Changes: Exchanges will now need prior SEBI approval to modify the expiry day of any existing derivatives product.

Implementation Timeline:

Stock exchanges have been directed to submit their expiry day selection proposal by June 15, 2025, and make the necessary changes to systems, bye-laws, and operational rules to implement the circular.

This regulatory intervention, based on stakeholder feedback and deliberations by SEBI’s Secondary Market Advisory Committee (SMAC), seeks to balance innovation with systemic safety by curbing expiry-day-related market disruptions.

To Read the full text of the Circular CLICK HERE

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