Motilal Oswal maintains its ‘Neutral’ rating on BSEcutting its target price to ₹2,300after SEBI mandated a shift in expiry days—assigning Thursdays to BSE and Tuesdays to NSEeffective from September 1, 2025.
MO expects the shift to undermine BSE’s index options average daily premium turnover significantly. It estimates a 350–400 basis point drop in market shareeroding premium ADTV to ₹137 billion in FY26 (from ₹155 billion) and ₹157 billion in FY27 (from ₹190 billion). This led the brokerage to cut earnings by 9% for FY26 and 12% for FY27 .
Trading at 53x FY27E P/EBSE is priced substantially above its historical average and global peers, prompting caution until the fiscal impact stabilizes.
SEBI’s latest directive aims to standardize weekly expiry days—Tuesday or Thursday—for all equity derivatives to prevent expiry clustering and reduce speculative excesses. The exchanges have until June 15 to finalize their preferred expiry day and must adjust monthly benchmark expiries accordingly.
BSE has confirmed that while new contracts from September will follow the new expiry schedule, existing weekly expiries remain unchanged until August 31with long-dated contracts being realigned over time.
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