At a time when the market regulator is considering the discontinuation of weekly options in favor of long-term derivatives, known as LEAPS, the NSE International Exchange (NSE-IX) located in GIFT City has announced the launch of zero-day-to-expiry (0DTE) options contracts on the Nifty 50 Index. The trading for these contracts is set to commence on October 13, following the approval from the International Financial Services Centres Authority (IFSCA).
The 0DTE options contracts are unique in that they feature daily expiries from Monday through Friday. This innovation positions NSE-IX as the first exchange in India to offer such instruments to international investors, aimed at addressing the needs of modern trading strategies that require agility and precision.
According to NSE-IX, the introduction of 0DTE derivatives provides a cost-effective and efficient tool for short-term risk management, allowing a broader range of investors with various capital bases and risk profiles to participate. The exchange emphasized the appeal of these contracts to high-frequency trading (HFT) and quantitative strategy desks, which depend on speed to capitalize on short-term opportunities.
In addition, these contracts increase the accessibility and affordability for retail investors, including non-resident Indians (NRIs) and overseas citizens of India, enabling them to participate more actively in India’s flagship index through GIFT IFSC.
On trading days, the applicable 0DTE options contracts will expire at 3:30 PM IST. New 0DTE options contracts will be available for trading following the daily expiry, ensuring that five serial weekly expiry contracts remain open at all times, as stated in the NSE-IX circular.
As for trading eligibility, NSE-IX indicates that any trading member, whether Indian or foreign and registered or non-registered with their domestic regulator, can participate in the Gift Nifty products by becoming a member of NSE-IX. Participants such as NRIs, foreign portfolio investors, and eligible foreign investors can trade these products by becoming clients of trading members of NSE-IX.
However, resident Indians are not permitted to trade in these contracts. Indian retail investors can only invest in NSE-IX receipts (US stocks) through the liberalized remittance scheme (LRS) route by becoming clients of trading members. An exclusive product called unsponsored depository receipts is available for Indian residents to purchase US stocks under the LRS.
The product is particularly suited for high conviction trades, enabling traders to pinpoint the precise movements of the underlying securities. In international markets, same-day expiry options are popular among option writers (sellers), who benefit from the rapid decay of premium. Traders can also use complex strategies like iron butterfly or iron condor with these contracts. Globally, indices such as the S&P 500, Nasdaq 100, Russell 2000, EURO Stoxx 50, and DAX index currently feature same-day expiry options.
Reports indicate that 0DTE options are increasingly becoming popular among retail investors in developed markets. However, domestic investors looking to trade these products may face substantial delays, and the prospect of widespread participation remains uncertain due to the limited understanding of derivative products among many options traders.
Published on October 10, 2025.
