Insights & Analysis

Indian exchanges to launch equity derivatives pre-open session

1st September, 2025|Aravind Bulusu

The National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) plan to start trading equity derivatives earlier from December, a move to regulate the vast Indian domestic equity derivatives segment.

The venues said late last week they will make the changes to allow testing of the new session early next month before moving to full, live trading of the pre-open session on December 8.

The extension, which will bring equity derivatives in line with the exchanges’ Indian cash equities markets, follows recommendations by regulator the Securities and Exchange Board of India (SEBI) to start earlier to reduce opening volatility.

The exchanges said in May they planned to implement the expert group’s recommendations to enhance trading convenience and strengthen risk monitoring in equity derivatives.

The exchanges did not specify when the pre-open session will start but NSE said in a circular: “Other operational modalities related to the implementation of pre-open session in equity derivatives shall be published via separate circular.”

In parallel, the National Stock Exchange of India plans to shift on Tuesday September 2 the expiry day of all weekly, monthly, quarterly, and half-yearly contracts to Tuesday from Thursday.

The shift, which applies to all index and single-stock futures and options contracts, has been implemented following recommendations from SEBI in May to mitigate market volatility and curb excessive speculation on the expiry day.

Jane Street confirmed in late July its request for more time to answer a wide-ranging investigation by the Indian regulator into the market-maker’s options trading.

NSE launched its first power futures contract in July.