BSE changes expiry day for single stock derivatives to second Thursday of calendar month, effective from July 1

The Bombay Stock Exchange (BSE) said on Tuesday, April 30, that it has changed the expiry day for single stock derivatives in its equity derivatives segment to the second Thursday of the calendar month from the existing practice of the last Thursday of the calendar month. The change is set to be implemented from Monday, July 1, 2024. 

As per the recent circular, the contracts for stock derivatives in the equity derivatives sector that are currently in effect and have an expiration day of the last Thursday of the month will expire on June 28, 2024. Following that, these contracts will no longer be included in the contract master file and will not be available starting July 1, 2024.

"All the existing monthly contracts of Stock Derivatives in equity derivatives segment with expiry day as Last Thursday of the Calendar Month (if Thursday is holiday then previous working day) will get expired on June 28, 2024 and will be removed from contract master file at end of day of June 28, 2024. These contracts will not be available for trading from Monday, July 01, 2024," BSE mentioned in the circular.

In preparation for the transition, new stock derivative contracts with three serial monthly expiries will be created on June 28, 2024, at the end of the day.

"New contracts of stock derivatives with three serial monthly expiries with expiry day as 2nd Thursday of the Calendar Month (if Thursday is holiday then previous working day) will be generated on June 28, 2024 end of day in equity derivatives segment for trading with effect from July 01, 2024," BSE further added.

BSE further mentioned that these changes will only apply to the expiry day of monthly contracts of single stock derivatives, and there will be no changes in the expiry day of any other contracts in the equity derivatives segment.