Insights & Analysis

India’s NSE to launch same-day options on NIFTY Index

30th September, 2025|Aravind Bulusu

The National Stock Exchange of India plans to launch zero-day-to-expiry (0DTE) options that track the main Indian blue-chip list on the group's NSE International Exchange (NSE IX).

The launch slated for October 13 is designed to answer increased demand for short-term flexible options in India, luring traders with lower option premiums and overnight risk reduction.

“The proposed 0DTE contracts will be available with five serial weekly expiries from Monday to Friday expiring on daily basis, excluding NSEIX market holidays,” the bourse said on Monday, after getting the nod from the International Financial Services Centres Authority (IFSCA) based in Gujarat International Finance Tec (GIFT)-City, the home of India’s first international exchange, NSE IX.

On each trading day, the 0DTE options will expire at 3:30 PM IST, the exchange said. If the expiry coincides with any existing weekly or monthly contracts, the same contract will be treated as the 0DTE contract, without any duplication, the Indian exchange said.

Available with a tick size of $0.5 (£0.37), the new 0DTE options’ settlement procedure and other details will be communicated separately by NSE IFSC Clearing Corporation Limited (NSEICC).

NSE published last month a research paper on NIFTY which said the index comprising 50 large Indian companies delivered an annualised return of 14.04% with an annualised volatility of 21.94% from June 1999 to June 2025.

The Indian exchange and its competitor Bombay Stock Exchange (BSE) said in September they plan to start trading equity derivatives earlier in the day from December.

The Indian regulator the Securities and Exchange Board of India (SEBI) proposed in September that exchanges cap net intraday Future Equivalent (FutEq) or delta equivalent positions in index options.

In July, the National Stock Exchange of India launched the trading venue’s first power futures contract.

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.