Weekly Expiry Days in Indian F&O Markets

Indian futures and options markets rank among the most liquid globally for exchange-traded derivatives. This phenomenon can be attributed to the increased participation of Foreign Institutional Investors (FIIs), Domestic Institutional Investors (DIIs), and, in recent years, retail investors.

This surge in participation prompted one of India’s oldest exchanges, the BSE, to launch its own derivatives operations in recent years. Consequently, Indian markets now offer expiry options every day of the week. This expanded flexibility allows institutions to effectively hedge their positions while enabling individual investors to take advantage of buying or selling opportunities for short-term gains.

This article briefly overviews the expiry days for tradable contracts.

What is Expiry Day?

The expiry day of an F&O contract is the day on which it is due for settlement between the buyers and sellers of the contract. After the expiry day these contracts are either settled physically i.e the underlying security is delivered at the strike prices agreed upon or they are cash settled i.e the difference between the strike price and the price at which the underlying has expired is settled in cash between the buyers and sellers.

In Indian markets all stock options and futures contracts are physically settled i.e the underlying security is delivered. While all the index futures and options contracts are cash settled between the buyers and sellers.

Update: Changes Weekly Options Derivatives

Starting September 1, 2025, the expiry schedule for weekly derivatives contracts on both NSE and BSE will be revised. This change applies to both indexes and stock derivatives.

Key Update from NSE

• All weekly and monthly, quarterly, and half-yearly contracts (index and stock derivatives) will now expire on Tuesday instead of Thursday.
• This applies to key indices (Nifty 50, Bank Nifty, Fin Nifty, Midcap Nifty, Nifty Next 50) and all stock F&O contracts.
• Contracts expiring on or before August 31, 2025, retain the current Thursday expiry schedule.

Expiry Day for NSE Contracts

From September 1, 2025, only Tuesday expiries for any new or subsequently introduced contracts. Existing open contracts will be realigned where necessary, with updated expiry info available before the transition date.

Changes Announced by BSE

• BSE weekly expiry for Sensex options/futures will shift from Tuesday to Thursday.
• BSE Sensex/Bankex monthly contracts will now expire on the last Thursday of the month (versus last Tuesday previously) from 1st september.

Read more: What is Spread Options: Meanings, Types, Strategies and More

Updated Expiry Days for BSE Options Derivatives

These changes apply to contracts expiring on or after September 1, 2025. Contracts expiring before that date follow the old schedule.

What Happens on the Expiry Day?

There are different scenarios which might play out on the expiry day.

Index Derivatives (e.g., NIFTY, BANKNIFTY, SENSEX)

• In-the-Money (ITM) Options – Automatic Exercise:
  If your index option expires ITM, it will be automatically exercised. You’ll receive or pay the difference between the strike price and the final settlement price of the index. These contracts are cash-settled.
• Out-of-the-Money (OTM) Options:
  OTM index options expire worthless, and the premium paid is lost.

Stock Derivatives (Futures & Options on individual stocks)

• In-the-Money (ITM) Options – Physical Settlement:
  If your stock option expires ITM, it is physically settled. This means you must deliver (if short) or take delivery (if long) of the underlying stock in the specified lot size.
• Futures Contracts:
  On expiry, stock futures are also physically settled — long positions result in delivery of shares, and short positions require giving delivery.
• Out-of-the-Money (OTM) Options:
  OTM stock options expire worthless, and the premium paid is lost.

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Conclusion

Understanding expiry days is crucial for anyone trading F&O contracts in India. With the recent introduction of weekly expiry options, Indian markets offer exceptional flexibility for managing risk and capitalizing on short-term opportunities.

By familiarizing yourself with the specific expiry days for your chosen contracts you can make informed trading decisions and navigate the Indian derivatives market with greater confidence.