NSE-IX Introduces Zero-Day-to-Expiry Options on Nifty 50 Index

1 min read     Updated on 10 Oct 2025, 06:23 PM
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Overview

NSE International Exchange (NSE-IX) in GIFT City is launching zero-day-to-expiry (0DTE) options contracts on the Nifty 50 Index from October 13. These options will expire daily at 3:30 pm IST, trading Monday through Friday. The move targets high-frequency trading and quantitative strategy desks, offering enhanced flexibility for intraday market risk management. Eligible participants include trading members, NRIs, foreign portfolio investors, and eligible foreign investors, while Indian residents are excluded. This initiative is expected to boost liquidity, provide precise hedging tools, and potentially increase trading volumes at NSE-IX.

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*this image is generated using AI for illustrative purposes only.

The NSE International Exchange (NSE-IX) in GIFT City is set to revolutionize short-term trading with the introduction of zero-day-to-expiry (0DTE) options contracts on the Nifty 50 Index. This groundbreaking move, slated to commence on October 13, positions NSE-IX as the pioneer in offering such instruments to international investors in India.

Key Features of 0DTE Options

  • Expiry: Daily at 3:30 pm IST
  • Trading Days: Monday through Friday (weekly expiries)
  • Regulatory Approval: International Financial Services Centres Authority (IFSCA)
  • Target Audience: High-frequency trading and quantitative strategy desks

Eligibility and Participation

Eligible Participants Ineligible Participants
Trading members Indian residents
NRIs
Foreign portfolio investors
Eligible foreign investors

Strategic Implications

The introduction of 0DTE options aligns with the growing demand for short-term risk management tools in the derivatives market. These contracts are particularly attractive to sophisticated investors employing high-frequency trading and quantitative strategies, offering enhanced flexibility in managing intraday market risks.

Regulatory Landscape

This launch comes at an interesting juncture, as India's market regulator is reportedly considering the discontinuation of weekly options while promoting long-term derivatives. The contrast between NSE-IX's move and the potential regulatory shift in the domestic market highlights the dynamic nature of India's financial markets and the differing approaches to derivatives trading in international financial centers.

Market Impact

The availability of 0DTE options on the Nifty 50 Index at NSE-IX is expected to:

  1. Enhance liquidity in the short-term derivatives market
  2. Provide more precise hedging tools for international investors
  3. Potentially increase trading volumes and market participation at NSE-IX

As the first exchange in India to offer such products to international investors, NSE-IX's initiative marks a significant step in the evolution of India's global financial market presence. It remains to be seen how this development will influence trading patterns and risk management strategies among eligible participants in the coming months.

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