BSE shares zoom 18% as NSE defers plan to move weekly F&O expiry to Monday; check other positive triggers for stock

The stock exchange took the move following the SEBI's consultation paper on the final settlement day (expiry day) for equity derivatives.

In its paper, the capital markets regulator said that the expiries of all equity derivatives contracts of an exchange will be uniformly limited to one of either Tuesdays or Thursdays.

This would provide optimal spacing between expiries across exchanges while avoiding the choice of either the first day of the week or the last day as an expiry day.

Every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day (Tuesday or Thursday).

Equity derivatives contracts are generally launched with a minimum tenure of a month. An exception to this is options contracts on a single benchmark index per exchange, where weekly expiries are currently allowed, SEBI said in its paper.

SEBI added that the exchanges will now need advance approval from SEBI for launching or modifying any contract expiry or settlement day.

After the SEBI's October 1, 2024, directive, each exchange was allowed to have options contracts for one benchmark index with weekly expiry.

BSE moved its SENSEX weekly expiry from Friday to Tuesday. Meanwhile, earlier this month, NSE had announced a revision in the expiry day of all index and stock derivatives contracts from Thursday to Monday, effective April 4, 2025.

"The revised expiry schedule will also apply to Bank Nifty monthly and quarterly contracts, as well as Fin Nifty, Midcap Nifty, and Nifty Next 50 monthly contracts. All stock derivatives with monthly expiry will move to Mondays," it had said.

Following the announcement, shares of BSE took a heavy beating as market participants expected the BSE’s volumes to get adversely impacted.

However, with the latest move, shares of BSE are likely to rally.

NSE IPO delayed further

Another reason why BSE shares are rallying today is the report that NSE IPO could face more delay. According to news reports, the bourse's IPO could face a potential delay of up to two years, following a detailed letter from the Securities and Exchange Board of India that flagged shortcomings.

The letter was sent at the end of February, coinciding with the conclusion of Madhabi Puri Buch's tenure as SEBI’s chairperson.

SEBI’s market regulation department flagged various issues, including concerns over the exchange’s internal processes, governance, and reducing stakes in its clearing corporation. The remuneration of key managerial personnel was also questioned, the report added.

BSE to consider bonus issue

Another reason why the shares of the exchange are rising is that the company on March 26 said its board of directors is scheduled to hold a meeting on Sunday, March 30, 2025, to consider and approve the proposal for the issue of bonus shares, subject to requisite approvals.

BSE stock performance

Shares of BSE have rallied 112% in the past 12 months and 45% in the past six months. In the past one month, the stock is up over 15%.