BSE Ltd.’s Managing Director and Chief Executive Officer Sundararaman Ramamurthy opposed unified expiry dates for derivatives contracts, arguing that they could harm competition and increase market concentration. He pointed to NPCI’s 30% cap on UPI third-party providers as a model to curb concentration risks in the stock market. The product differentiation through factors like underlying assets and expiry days is crucial for fostering liquidity and competition, Ramamurthy told NDTV in a televised interview, recounting how, in the past, all major derivatives contracts, including Nifty and Bank Nifty, expired on Thursdays. Despite BSE investing heavily in liquidity enhancement and technology schemes, its products struggled to gain traction.
BSE later moved Sensex expiry to Fridays, aligning with market consensus. However, concerns over concentration risk led to another shift, and BSE eventually settled on Tuesday expiries after NSE retained Thursdays. Ramamurthy said a unified expiry date benefits dominant exchanges but stifles competition and increases systemic risk.
