BSE Shares Surge Nearly 18% As NSE Pauses F&O Weekly Expiry Shift

Shares of BSE Ltd, Asia’s oldest stock exchange, soared 17.81 per cent to reach Rs 5,519 apiece on the National Stock Exchange (NSE) on Friday, March 28. The sharp rise followed the National Stock Exchange's (NSE) decision to put on hold its plan to shift the weekly expiry day for futures and options (F&O) contracts to Monday.

This decision comes in response to a recent consultation paper issued by the Securities and Exchange Board of India (SEBI) regarding the final settlement day for equity derivatives. The market regulator stated that all equity derivatives contract expiries on an exchange should be confined to either Tuesday or Thursday. This measure aims to ensure optimal spacing between expiry dates across different exchanges and to avoid scheduling them on the first or last day of the week.

Under SEBI's directive, each exchange will be permitted to maintain a single weekly benchmark index options contract on their designated day. While equity derivatives contracts typically have a minimum tenure of one month, weekly expiries are allowed only for a single benchmark index per exchange. SEBI also mandated that any changes to contract expiries or settlement days would require prior approval.

Following SEBI’s order effective October 1, 2024, BSE shifted its SENSEX weekly expiry from Friday to Tuesday. Meanwhile, NSE had earlier announced a transition of all index and stock derivatives contract expiries from Thursday to Monday, starting April 4, 2025. This revision included changes to Bank Nifty, Fin Nifty, Midcap Nifty, and Nifty Next 50 contracts.

However, the move raised concerns about a potential decline in BSE’s trading volumes, leading to a previous dip in its stock price. With NSE now postponing its decision, BSE shares are witnessing a rally.

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NSE IPO Faces Further Delays

Another contributing factor to BSE’s stock surge is reports of a delay in NSE’s long-awaited initial public offering (IPO). According to sources, SEBI has advised the NSE to put its IPO plans on hold for up to two years due to governance concerns and internal process shortcomings. A letter from SEBI’s market regulation department, sent in late February, highlighted issues such as NSE’s stake reduction in its clearing corporation and remuneration policies for key executives. This regulatory scrutiny could further extend the timeline for NSE’s public listing.

BSE Considers Bonus Issue

Adding to the positive sentiment, BSE recently announced that its board of directors will meet on Sunday, March 30, 2025, to discuss a potential bonus issue. The proposal, if approved, is expected to boost investor confidence and further support the stock’s upward momentum.

BSE Stock Performance

BSE’s stock has delivered a remarkable performance, surging 112 per cent over the past year and 45 per cent in the last six months. In the past month alone, the stock has gained over 15 per cent, reflecting strong investor interest amid recent developments.