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NSE needs to get NOC from the regulator. It made an application in August last year
| Photo Credit:
REUTERS
Capital market regulator Securities and Exchange Board of India (SEBI) has indicated the much- awaited Initial Public Offering (IPO) of National Stock Exchanges (NSE) likely to get green light soon. Meanwhile, the regulator said that guidelines regarding expiry dates will be released later this month, after reviewing feedback from the consultation paper.
“All the outstanding issues will be resolved and we will move forward…NSE and Sebi are talking, they are resolving the issues and I’m very hopeful, it will be cleared and will move forward,” Pandey told reporters at an event organised by Assocham. To the question, when the issues would be resolved, he replied, “Can’t give a timeline but we should be soon doing it”.
NSE needs to get NOC (No Objection Certificate) from the regulator. It made an application in August last year. Once it gets that, it will file Draft Red herring Prospectus (DRHP) with SEBI. Once the regulatory review is complete and there is no adverse observation from SEBI, the exchange will proceed with launching its IPO. NSE’s listing has been delayed due to several factors, including investigations into the exchange’s preferential treatment of certain entities.
F&O Expiry date
Meanwhile, in response to a different question, Pandey said that the market regulator will come up with a circular on F&O expiry day this month itself. “Right now, whatever framework is there, we will be issuing a post-consultation paper and we will be analysing the comments. The committees have met and soon we will be issuing a clarification within this month,” he said.
When asked whether expiries will be shifted to Tuesday or Thursday, he said “Those days are fixed now. No change in the current thing but changes further”. SEBI, in its consultation paper, also proposed that exchanges should seek SEBI’s approval before launching or modifying any contract expiry or settlement day. “Every exchange will continue to be allowed one weekly benchmark index options contract, on their chosen day (Tuesday or Thursday),” the regulator had proposed.
According to SEBI, this is to provide optimal spacing between expiries across exchanges, while avoiding the choice of either the first day of the week or the last day as an expiry day. The development comes after the National Stock Exchange’s (NSE) recent announcement to shift the weekly and monthly expiry day for Nifty contracts to Monday from Thursday. The move was expected to result in higher implied volatility and premiums for options traders.
Spacing out of expiry days through the week reduces concentration risk and provides an opportunity to exchanges to offer product differentiation to market participants, the regulator said. At the same time, too many expiry days have the potential to revive expiry day hyperactivity which could jeopardise investor protection and market stability.
“It has been decided to formalise the final settlement days for equity derivatives contracts across exchanges so that it gives predictability to market participants while avoiding any unwarranted shuffling of such days that may impact market integrity or orderly trading,” the regulator said.
Published on May 22, 2025
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