In a notable market movement, shares of BSE Limited (BSE), Central Depository Services Limited (CDSL), and Multi Commodity Exchange of India (MCX) witnessed substantial gains on March 28, 2025. This surge follows the Securities and Exchange Board of India’s (SEBI) proposal to standardize the expiry days of equity derivatives contracts. The proposed changes aim to enhance market stability and reduce volatility associated with derivatives trading.
SEBI’s Proposal on Derivatives Expiry Days
SEBI has proposed limiting the expiry of all equity derivatives contracts to either Tuesdays or Thursdays. This initiative seeks to balance market stability, investor protection, and innovation. By standardizing expiry days, SEBI aims to mitigate concentration risks and ensure orderly trading sessions.
Impact on BSE, CDSL, and MCX Shares
The market responded positively to SEBI’s proposal:
-
BSE Limited (BSE): Shares surged over 15% during intraday trading, reaching ₹5,392.55 apiece. This optimism reflects investor confidence in BSE’s potential to gain market share in the derivatives segment.
-
Central Depository Services Limited (CDSL): As a subsidiary of BSE, CDSL shares rose over 5%, benefiting from the positive sentiment surrounding its parent company.
-
Multi Commodity Exchange of India (MCX): Shares advanced nearly 4%, indicating a favorable market outlook for the commodity exchange platform.
NSE’s Response to SEBI’s Consultation Paper
In light of SEBI’s consultation paper, the National Stock Exchange (NSE) has deferred its plan to change the expiry day of all index and stock derivatives to Monday from Thursday. This decision underscores the influence of regulatory proposals on exchange operations and their strategic decisions.
Analyst Insights on Market Dynamics
Analysts suggest that SEBI’s proposal could enable BSE to prevent market share loss and potentially increase its options trading market share to over 25-30% by the second quarter of FY2026. This anticipated growth is expected to significantly boost BSE’s revenues.
Broader Implications for the Indian Financial Market
SEBI’s initiative is part of broader efforts to tighten regulations in the booming equity derivatives market. By reducing the number of weekly options contracts and increasing the minimum trading amount, SEBI aims to curb speculative trading and enhance investor protection. These measures are expected to impact trading volumes and brokerage revenues, prompting market participants to adapt to the evolving regulatory landscape.
Conclusion
The recent surge in BSE, CDSL, and MCX shares underscores the significant impact of regulatory proposals on market dynamics. As SEBI continues to implement measures aimed at ensuring market stability and investor protection, stakeholders must remain vigilant and adapt to the changing environment. The proposed standardization of derivatives expiry days marks a pivotal step in fostering a more orderly and resilient financial market in India.
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
