The Bombay Stock Exchange (BSE) on Tuesday, April 30, announced that the expiration date for individual equity derivatives under its equity derivatives division has been changed from the previous Thursday of the last day of a calendar month to the second Thursday of a calendar month. . This change is scheduled to take effect from Monday, July 1, 2024.
According to the recent circular, the equity derivatives contracts in the equity derivatives sector that are currently in force and expire on the last Thursday of each month will expire on June 28, 2024. These contracts will then be abolished. Included in the Contract Master File and will no longer be available after July 1, 2024.
“All existing monthly contracts for equity derivatives in the Equity Derivatives segment with an expiration date on the last Thursday of the calendar month (or the previous business day if Thursday is a holiday) will expire on June 28, 2024, and the contract master file These contracts will no longer be available for trading from Monday, July 1, 2024,” the BSE said in the circular.
In preparation for the transition, new equity derivative contracts will be created with three consecutive monthly maturities ending on June 28, 2024.
“A new contract for equity derivatives with three consecutive monthly maturities with a maturity date on the second Thursday of the calendar month (or the previous business day if Thursday is a holiday) will be issued in the Equity Derivatives segment on June 28, 2024. will be generated and valid for trading from July 1, 2024,” BSE further added.
BSE further said that these changes are applicable only on the expiry date of monthly contracts for individual equity derivatives and there is no change in the expiry dates of other contracts in the equity derivatives segment.