SEBI Suggests Monday Expiry for Equity Derivatives: A Game-Changer for F&O Traders

The Securities and Exchange Board of India (SEBI) has issued a consultation paper suggesting a major overhaul of the expiry day for equity derivatives. The regulator is in the process of considering changing the last settlement day from Thursday to Monday, a move that would dramatically alter the future of futures and options (F&O) trading in India.

 

Points to note:

This proposal is the follow-up of the National Stock Exchange's (NSE) latest announcement to move Nifty expiry to Mondays with effect from April 5, 2025. SEBI's consultation paper aims to roll out this move to all equity derivatives.

 

The regulator hopes this change may result in better price discovery and arguably lower volatility usually seen on expiry days. It will also give traders additional time to respond to weekend events and international market action.

 

Market participants are invited to comment on the suggestion, as SEBI wants to hear from a range of stakeholders before making the change final.

 

Sources: SEBI Consultation Paper, NSE Circular, March 27, 2025