Rollover means carrying forward your futures position by switching from the current-month contract closer to expiration to another-month contract with expiry in another month. You perform a rollover by closing your position in a contract that is about to expire and opening a similar new position in another month's contract.
Example scenario
- You buy a Nifty futures contract with an expiry date of 23rd February.
- You think that Nifty will continue to go up in March and want to hold this position till then.
- Since this position will expire on 23rd February, you can exit the Nifty February futures contract and take a new position for March futures contract with an expiry date in March.
As per SEBI
(ZIP),
Rollover of contracts in the
ban period
is not allowed. However, exiting the existing positions is allowed.