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- Securities and Exchange Board of India vide circular dated May 26, 2025, has issued Final Settlement Day (Expiry Day) for Equity Derivatives Contracts.
- Following has been decided with regard to final settlement day
/ expiry day for equity derivatives contracts:
- Expiries of all equity derivatives contracts of an exchange will be uniformly limited to either Tuesday or Thursday.
- Every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day (Tuesday or Thursday).
- Besides benchmark index options contracts, all other equity derivatives contracts, viz., all benchmark index futures contracts, non-benchmark index futures / options contracts, and all single stock futures / options contracts will be offered with a minimum tenor of 1 month, and the expiry will be in the last week of every month on their chosen day (that is last Tuesday or last Thursday of the month).
- Exchanges will now seek prior approval of SEBI for modifying the settlement day of their derivatives contracts from the one which has been existing.
- To operationalize the aforesaid circular, stock exchanges shall submit their proposal to SEBI, in compliance with Clause 3 above, by June 15, 2025.
- The circular is attached herein.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
