06-Jun-2023
2 mins read
The National Stock Exchange of India Limited (NSE) recently issued a circular today stating a crucial revision in the contract expiry day for BANKNIFTY Futures and Options. This announcement represents a significant shift for traders, who will now need to adapt to the revised schedule.
Change in Expiry Day for BANKNIFTY Contracts
From July 7, 2023, onwards, the NSE is shifting the expiry day for BANKNIFTY Futures and Options from the existing Thursday schedule to Friday. This decision was made after receiving feedback from market participants.
Impact on Existing Contracts
This change will affect all existing contracts, with their expiry day moved from Thursday to Friday. The first contract with the newly rescheduled Friday expiry will be July 14, 2023.
Changes in Detail
Here’s a detailed view of how the expiry day for the derivatives contract on BANKNIFTY will be changed:
Weekly Contracts:
| Current Expiry Day | Revised Expiry Day |
| Thursday of every week except the expiry week of the monthly contract | Friday of every week |
Note: If the revised expiry day falls on a trading holiday, the expiry day will be shifted to the previous trading day.
Monthly and Quarterly Contracts:
| Current Expiry Day | Revised Expiry Day |
| Last Thursday of the expiry month | Last Friday of the respective contract month |
Note: If the revised expiry day falls on a trading holiday, the expiry day will be shifted to the previous trading day.
Additional Guidelines
In addition to the rescheduling of the expiry day, there are important instructions for the transition phase:
Transition Phase: All existing futures and options contracts will adjust their expiry and maturity dates at the end of the day (EOD) on July 6, 2023. This means if an existing contract were set to mature on July 13, 2023 (Thursday), it would be moved to July 14, 2023 (Friday). Similarly, if a contract were due to expire on the last Thursday of August (August 31, 2023), it would be preponed to August 25, 2023 (Friday).
New Contracts: Any new contract created for trading on or after July 6, 2023, EOD, will be aligned with the revised expiry days.
Existing Contract Specifications: Apart from the shift in expiry day, all other specifications of the BANKNIFTY contract will remain unchanged.
Settlement Schedule: The Clearing Corporations will provide a separate update about the settlement schedule.
Implementation Date: The circular and its revisions will take effect from EOD of July 6, 2023, and the revised contracts will be available for trading from July 7, 2023.