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New Delhi:
The country’s largest derivatives exchange National Stock Exchange (NSE) has made a big change regarding the expiry of Bank Nifty’s futures and options. Under the new change, now the expiry of Bank Nifty contracts will be on Friday instead of Thursday. These new rules of contract expiry will be applicable from July 7, 2023.
Expiry on Friday, July 14 for the first time
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NSE says that all existing contracts whose expiry and maturity date is July 6, 2023, will be revised or postponed on Friday. Thus, for the first time on July 14, 2023, the futures and option contracts of Bank Nifty will expire on Friday.
What if the market is closed on Friday?
At present, the weekly expiry of Bank Nifty contracts is on Thursday and the monthly and quarterly expiry is on the last Thursday of the month. After the new changes, now the monthly expiry will be on the last Friday of the month. If Friday is a holiday and the market remains closed, then the expiry will happen a day before that. Here we are going to tell you through some easy points that how this new rule will work.
Suppose the expiry or maturity of the existing contracts is Thursday, July 13, 2023, then now they will expire a day later i.e. on Friday, July 14, 2023.
Similarly, if the expiry of the existing contracts is on the last Thursday of the month i.e. 31st August, then now its expiry will be on Friday 25th August.
Suppose a new contract is made on July 6, 2023, then now its expiry will be on Friday under the new rules.
According to NSE, the clearing corporations will later release the settlement schedule based on the new expiry date.
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