BSE Shares Dip Amid SEBI's Proposal to Extend F&O Contract Tenures
At 12:30 PM IST, BSE shares were trading at ₹2,201, marking a 3% drop from the previous close
11 September 2025
Shares of BSE Ltd experienced a notable decline on Thursday, September 11, 2025, following reports that the Securities and Exchange Board of India (SEBI) is considering a shift from weekly to monthly expiry cycles for equity derivatives contracts.
At 12:30 PM IST, BSE shares were trading at ₹2,201, marking a 3% drop from the previous close.
The proposed change, which may be formalized through a consultation paper expected within the next month, aims to transition from short-term weekly expiries to longer-term monthly contracts. This move is part of SEBI’s broader strategy to enhance market stability and reduce the prevalence of speculative trading, particularly among retail investors. The regulator is also contemplating a uniform expiry day across exchanges, potentially aligning all derivatives expiries to the same weekday.
SEBI’s board is scheduled to discuss these proposals in its upcoming meeting on September 12, with consultations involving exchanges set to commence shortly thereafter. This development follows earlier discussions by SEBI Chairman Tuhin Kanta Pandey, who highlighted the need to increase the tenure of equity derivatives to better serve hedging and long-term investment purposes.
The potential shift has raised concerns among market participants, particularly those whose business models are heavily reliant on the high trading volumes associated with short-term contracts. For instance, BSE derives a significant portion of its revenue from derivatives trading, and a reduction in trading frequency could impact its financial performance.
In addition to the proposed changes in contract tenures, SEBI has already implemented measures to standardize expiry days across exchanges. As of September 1, 2025, the National Stock Exchange (NSE) moved its weekly derivatives expiry to Tuesdays, while BSE shifted its expiry to Thursdays. These adjustments aim to optimize market operations and reduce overlapping trading volumes, thereby enhancing market efficiency.
Market analysts are closely monitoring these developments, as the proposed changes could have far-reaching implications for the structure of India’s equity derivatives market. While the move is intended to promote long-term investment strategies, it may also alter the dynamics of trading volumes and liquidity in the short term.
As SEBI continues to evaluate the impact of these potential changes, market participants are advised to stay informed and consider the possible effects on their trading strategies and investment portfolios.