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NSE scraps plan to shift the expiry of Bank Nifty to Friday

Mumbai: The National Stock Exchange has scrapped the plan to shift the expiry of Nifty Bank derivative contracts to Friday from Thursday. Nifty Bank futures and options will continue to expire on Thursday, said NSE and BSE in a joint press release on Tuesday.

The decision was taken after BSE requested them to consider shifting the Bank Nifty expiry to any day other than Friday, the release said. In a bit to revive its derivatives segment, BSE had relaunched its future & options (F&O) contracts on Sensex and Bankex on May 15, 2023, with weekly and monthly expiry happening on Friday. NSE’s Nifty and Bank Nifty contracts expire on Thursday.

NSE last month announced that the expiry day for Nifty Bank F&O contracts is Friday from Thursday, effective from the trade date of July 7, 2023.

“BSE, based on market feedback feels that this can potentially impact the growth of Sensex and Bankex derivatives,” said the joint statement by BSE and NSE. “Considering the need for balanced market development and avoidance of concentration risk in the market, BSE has requested NSE to consider shifting of the Bank Nifty expiry to any day other than Friday. This will help in growing this complementing Sensex/Bankex derivatives and thus de-risk the market.”

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