BSE share price: A decision of the National Stock Exchange (NSE) has made the country's oldest exchange sweat. In one stroke, the Bombay Stock Exchange has fallen by 9 percent. NSE has decided to change the expiry day of its futures and options (F&O) contracts. This decision is sure to affect the investors, but the country's oldest exchange BSE also got a strong shock. NSE's decision has also raised many questions in the minds of investors. Why was this decision taken? What effect can it have on the portfolio?

On the morning of March 5, the shares of Asia's oldest stock exchange BSE saw a decline of 9%. This decline happened when its rival National Stock Exchange (NSE) changed the expiry day of all futures and options (F&O) contracts to Monday instead of Thursday. This change will be effective from April 4. This means that now the expiry day of weekly F&O contracts of all Nifty indices will be on the last Monday of the month, not Thursday.

Apart from this, NSE has also changed the expiry day of F&O contracts of Bank Nifty, Finnifty, Nifty Midcap Select, and Nifty Next50 to the last Monday of the month. This change will come into effect from April 4, 2025.

Why was such a decision taken?

An NSE spokesperson explained the reason behind this decision and said, "This decision has not been taken based on any data or benefit. It has been taken keeping in mind the geopolitical events taking place during the weekend. Monday is considered better for expiry. We are also getting feedback on this, but we have taken this decision keeping efficiency in mind. If needed, we will also review it. "

Will trading increase on Friday?

Experts believe that this change may increase trading activity on Friday, as investors may prefer to close their positions instead of holding them till the weekend. This move is also considered to be part of NSE's effort to increase its share in the options market.

After this news, BSE shares saw a huge decline. At 9:45 am, the price of BSE shares on NSE was Rs 4,163.4, which was the lowest level in the last four months. By 10:45 am, the decline was reduced to about 6 percent and the price came down to around Rs 4,180.

The target is to protect investors from speculation: NSE.

NSE Chief Business Development Officer Sriram Krishnan said in an interview with CNBC-TV18, "The regulator believes that reducing the expiry days will curb speculation. An effective solution to this could be that there should be only one expiry day in a week for all exchanges." He also said that it is important to make investors aware of the risks of options trading, and it is their responsibility.

Earlier, international brokerage firm Goldman Sachs had reduced the target price of BSE shares to Rs 4,880, which was earlier Rs 5,650. Goldman Sachs has maintained a neutral rating on BSE shares. The brokerage firm said that about 70 percent of BSE's average daily turnover comes from proprietary traders. The Securities and Exchange Board of India (SEBI) has proposed a new way to measure investors' risk in a consultation paper released on February 24.