India`s BSE jumps after markets regulator proposes rejig in derivatives expiry rules
Shares of India's BSE jumped nearly 12% on Friday after the country's market regulator proposed rejigging the derivatives expiry schedule, a move analysts said will help ease concerns over the bourse's market share loss.
India's markets regulator, late on Thursday, proposed limiting expiries of all equity derivatives contracts to either Tuesday or Thursday to ensure optimal spacing for expiry dates.
BSE's shares gained as much as 11.7% to 5,232.8 rupees as of 9:51 a.m. IST and were last trading 11.5% higher.
The move secures Tuesday as BSE's expiry day, preventing a potential market share loss had its dominant rival, the National Stock Exchange (NSE), shifted to Monday as previously proposed, attracting more traders and reduced volumes on BSE.
By keeping the separation, BSE will see steady trading activity, reducing the estimated 12% negative impact on its earnings per share, Jefferies analysts said in a note.
