May 26, 2025

Stock exchanges in India have been directed by the Securities and Exchange Board of India (SEBI) to submit their proposal for a chosen expiry day by June 15. This comes after SEBI issued a circular restricting the expiry days for equity derivatives to Tuesdays and Thursdays. The move aims to enhance market efficiency and bring more transparency to the trading of derivative products. The new rules will be applicable to all bourses operating in the country. SEBI's decision to limit the expiry days is part of its ongoing efforts to safeguard investors' interests and ensure the smooth functioning of the financial markets. The regulator has been proactive in introducing measures to prevent manipulative practices and maintain the integrity of the market. By enforcing the new guidelines, SEBI aims to streamline the trading process and reduce the risks associated with derivative trading. Stock exchanges will need to carefully consider their options and submit their preferred expiry day to SEBI before the deadline. Failure to comply with the new regulations could result in penalties or other enforcement actions by the regulator. Overall, the initiative is expected to create a more structured and disciplined trading environment for equity derivatives in India.

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Tags: Stock exchanges, Sebi, Equity derivatives, Expiry day,