SEBI Chairman Denies Plans To Curb Weekly Derivatives Expiry

Last Updated:August 06, 2025, 16:35 IST

SEBI Chairman Tuhin Kanta Pandey denied reports of curbing weekly derivatives expiry, calling them speculative. SEBI is evaluating ways to reduce short-term speculation.

Sebi Chairman Tuhin Kanta Pandey

SEBI Chairman Tuhin Kanta Pandey denied reports suggesting that the market regulator plans to curb weekly derivatives expiry. He said the reports as “speculative” as reported by CNBC TV-18.

His comments come amid a sharp decline in shares of BSE and other capital market-linked stocks for the second straight day. However, stocks recovered substantially to close in the green.

The fall was triggered by reports that SEBI, in coordination with the Finance Ministry, was exploring ways to reduce speculative trading—possibly by scrapping weekly expiry contracts and replacing them with fortnightly or monthly expiries.

On August 5, CNBC-TV18 had reported that the government and SEBI were holding talks to reduce the dominance of options trading and boost activity in the cash segment. According to the report, officials believe that weekly expiry is being increasingly used for speculation rather than genuine hedging, prompting discussions on regulatory changes.

Last month, SEBI whole-time member Ananth Narayan had flagged concerns over the growing share of short-term F&O contracts, indicating that the regulator was evaluating ways to enhance the quality of the derivatives market. Narayan said SEBI could look at “extending the tenure and maturity of products” to reduce excessive short-term speculation and encourage longer-term participation.

A new study by the Indian market regulator a few months back, analysing the performance of individual traders in the equity derivative segment between December 2024 and May 2025, had revealed that 91 per cent incurred a net loss in EDS in FY2025. This followed the measures to tighten risks in equity derivatives by SEBI in a gradual manner starting from May 2024. It also marked a jump of 41 per cent from the previous study in FY2024.

However, the number of unique investors trading in EDS down by 20 per cent in FY2025 compared to the previous year. The study also highlights that India has continued to see relatively very high level of trading in EDS compared to other markets, particularly in index options.

Index options turnover, year on year, is down by 9% (in premium terms) and 29% (in notional terms). However, compared to 2 years ago, index options volume is up by 14% (in premium terms) and 42% (in notional terms).

Business Desk

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