Bank Nifty expiry will stay scheduled on Thursday after NSE scraps earlier plan

• The proposed Friday expiry of Bank Nifty coincided with the expiry of the Sensex/ Bankex F&O contracts
• By scheduling the above mentioned expiry on Friday, NSE was set to have an F&O expiry four days a week
• The first Friday expiry was scheduled on July 14.

The National Stock Exchange has withdrawn its plan of shifting the Nifty Bank derivative contracts expiry from Thursday. Earlier on June 6, the NSE had moved the expiry day for Nifty Bank Future & Options (F&O) contracts to Friday from Thursday effective July 7.

The reason for the change in stance is that the proposed Friday expiry of Bank Nifty coincided with the expiry of the Sensex/ Bankex F&O contracts that were relaunched by BSE in mid-May.

“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,” reads the joint statement from both the exchanges.

In accordance with the request, the NSE has withdrawn its earlier plan. The first Friday expiry was to be on July 14.

By scheduling the above mentioned expiry on Friday, NSE was set to have an F&O expiry four days a week. It's noteworthy that the Nifty Financial expiry is on Tuesday, Nifty Midcap Select on Wednesday, Nifty 50 on Thursday.

The Nifty Financial expiry was earlier on Thursday but it was then shifted to Tuesday. Market analysts say that this shift helped ensure that traders could concentrate on individual expiries better and worked favourably for the exchange with trading volumes going up significantly in Nifty Financial.