BSE Share Price Decline Following NSE’s Change in Expiry Schedule

Market Performance

On March 5, 2025, the BSE Share Price, recognized as one of Asia's oldest stock exchanges, experienced a notable decline of over 9% during the morning trading session. This drop followed the National Stock Exchange's (NSE) announcement regarding revising expiry dates for its futures and options (F&O) contracts.

As of 9:45 AM, BSE's stock was trading at ₹4,163.4 on the NSE, marking a decrease of 6.4% and reaching its lowest level in four months.

Main News

The National Stock Exchange has declared a modification to the expiry day of its weekly Nifty index futures and options contracts. Beginning April 4, 2025, the expiry will move from Thursday to Monday. This change will apply to the Nifty index and contracts, including Bank Nifty, FinNifty, Nifty Midcap Select, and Nifty Next50.

According to NSE, this adjustment aims to align with market dynamics and to manage the impact of geopolitical developments that often arise over weekends. Additionally, the exchange highlighted that feedback on this change was considered, and the modification was finalized with an emphasis on operational efficiency.

The official circular from NSE states that the change will be implemented on April 4, 2025. All existing contracts will transition to the new expiry day at the end of the trading session on April 3, 2025.

Company Details

BSE Ltd.

• Stock Performance:
  • Decline of over 9% during the morning session on March 5, 2025
  • Trading at ₹4,163.4 at 9:45 AM, down 6.4%
  • Reached a four-month low

National Stock Exchange (NSE)

• Key Update:
  • Weekly F&O contracts for Nifty and other major indices will now expire on Mondays instead of Thursdays
  • Change effective from April 4, 2025
  • Applicable to Nifty, Bank Nifty, FinNifty, Nifty Midcap Select, and Nifty Next50
• Implementation Details:
  • All active contracts will adopt the new expiry date following the close of trading on April 3, 2025

Regulatory Context

Regarding market regulation, there has been an ongoing discussion about managing speculative trading by adjusting expiry schedules. The aim is to reduce market volatility by standardizing expiry periods across trading platforms. Furthermore, efforts continue to focus on enhancing investors' grasping the potential risks tied to options trading is crucial for making informed decisions

Summary

On March 5, 2025, BSE Ltd. experienced a significant decrease in its share price following the National Stock Exchange's announcement to shift the expiry day of weekly index futures and options contracts to Mondays, effective April 4, 2025. This strategic change affects various indices and is designed to accommodate market conditions and improve operational processes. The adjustment is part of broader considerations within the financial market to manage trading activities and promote informed participation.