(Reuters) – Shares of India’s BSE surged 18% on Friday after the country’s markets regulator proposed rejigging the derivatives expiry schedule, a move that analysts said would help ease concerns over the bourse’s market share loss.
The Securities and Exchange Board on India (SEBI), late on Thursday, proposed limiting expiries of all equity derivatives contracts to either Tuesday or Thursday to ensure optimal spacing for expiry dates.
BSE’s shares jumped as much as 17.82% to 5,519 rupees as of 11:09 a.m. IST and were on track for their best day in six months.
The move could help BSE retain Tuesday as its expiry day, preventing a potential market share loss if its rival, the National Stock Exchange (NSE), which currently holds Thursday as its expiry day, were to shift to Monday as previously proposed.
Following SEBI’s proposal, NSE said it would hold off its plans to shift its derivatives expiry day to Monday.
By keeping the separation, BSE will see steady trading activity, lowering the risk of an estimated 12% hit to its earnings per share, Jefferies analysts said.
With BSE’s contracts expiring before NSE, an increase in trading volumes will help boost the bourse’s market share, according to analysts at Motilal Oswal.
“In such a scenario (proposed expiry dates), BSE will continue to gain market share in options trading and could reach above 25% -30% starting second quarter of fiscal year 2026,” said Aishvarya Dadheech, chief investment officer of Fident Asset Management.
“This will enable BSE to significantly increase its transaction revenues and overall revenue growth in FY26-27 period,” he added.
BSE’s current market share in options trading is 18% to 19%, while NSE holds the rest.
Last October, SEBI reduced the number of weekly options contracts for trading, prompting exchanges to offer contracts with various expiry days to curb the unchecked explosion of retail investor trading in derivatives.
(Reporting by Manvi Pant and Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)
