National Stock Exchange (NSE) has made revisions to the expiry day of Nifty Bank monthly and quarterly contract cycle, wherein all existing monthly contracts would now expire on the last Wednesday of the expiry month or quarter. This is against the prevailing practice of using last Thursday of the month or quarter as the expiry day. In a circular, NSE said if Wednesday is a trading holiday, the expiry day is the previous trading day.
The stock exchange said the change in Nifty Bank monthly and quarterly contract cycle expiry day from existing Thursday to Wednesday will be effective from trade date March 01, 2024, Friday.
"There is no change in expiry date of monthly expiry contracts of January 2024 and February 2024," it said.
Besides, NSE said expiry day of all existing contracts available for trading on March 01, 2024 will be preponed from February 29, 2024 end of the day.
NSE said the new far monthly expiry cycle of May 2024 will be introduced with expiry day of May 29, 2024 (last Wednesday of the expiry month). The first Wednesday monthly expiry will be on March 27, 2024.
"At EOD of February 29, 2024, the expiry date and maturity date for all existing contracts will be Wednesday. Any new contract created for trading on / after EOD of February 29, 2024 shall be created as per the revised expiry days as mentioned in the aforesaid table," NSE said.
The stock exchange said there is no other change in the existing contracts specifications of Nifty Bank and that the settlement schedule will be intimated separately by Clearing Corporations.
"The circular shall come into effect from EOD of February 29, 2024 and revised contracts shall be available for trading from March 01, 2024. Members are advised to take the updated contract.gz, spd_contract.gz, MII - Contract.gz and MII - spd contract.gz file available on extranet path faoftp/faocommon before trading on March 01, 2024," NSE said.