Final Settlement Day (Expiry Day) for Equity Derivatives Contracts
Summary
SEBI mandates that equity derivatives expiries be uniformly limited to either Tuesday or Thursday to reduce concentration risk. Stock exchanges are permitted one weekly benchmark index options contract on their chosen day, while other contracts must have a minimum tenor of one month. Exchanges must submit implementation proposals by June 15, 2025, and seek prior approval for any future modifications to settlement days.
Text
Based on the aforesaid and in exercise of powers conferred under Section 11 (1) read with Section 11(2)(a) of the SEBI Act, 1992... following has been decided with regard to final settlement day / expiry day for equity derivatives contracts:
Expiries of all equity derivatives contracts of an exchange will be uniformly limited to either Tuesday or Thursday.
Every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day (Tuesday or Thursday).
Besides benchmark index options contracts, all other equity derivatives contracts... will be offered with a minimum tenor of 1 month, and the expiry will be in the last week of every month on their chosen day...
Exchanges will now seek prior approval of SEBI for modifying the settlement day of their derivatives contracts from the one which has been existing.
To operationalize the aforesaid circular, stock exchanges shall submit their proposal to SEBI, in compliance with Clause 3 above, by June 15, 2025.
Stock Exchanges and Clearing Corporations are directed to take necessary steps to put in place systems for implementation of this Circular, including necessary amendments to the relevant bye-laws, rules and regulations, if any.
Source: SecMarx — Final Settlement Day (Expiry Day) for Equity Derivatives Contracts. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.