Mumbai: The Chairman of the Securities and Exchange Board of India (Sebi), Tuhin Kanta Pandey, stated on Friday that the regulator will implement any changes to the futures and options (F&O) segment gradually and thoughtfully, indicating that discontinuing weekly expiries is not being considered. “We can’t just shut down weekly F&O expiries. Many market participants are actively using it,” Pandey commented during an event in Mumbai. Regarding the long-awaited NSE IPO, he assured that the share sale will ultimately proceed.
Speaking at a Business Standard event, Pandey mentioned that a committee formed after the departure of his predecessor, Madhabi Puri Buch, to recommend a process for the capital markets regulator to disclose conflicts of interest, is expected to present its recommendations by November 10. When asked specifically about the NSE IPO, Pandey noted that to assess the broader market impact of F&O trading trends, the regulator is currently collecting and analyzing substantial data on these patterns, which will be shared in the form of a consultation prior to any further actions. He also highlighted that Sebi has already enacted certain measures within the derivatives sector, some of which are yet to be implemented.
Earlier reports suggested that the regulator aims to phase out weekly F&O expiries to boost cash market trading and reduce speculation. Pandey’s comments align with ongoing demands for tighter regulation of the derivatives market due to rising concerns over increased speculative trading and retail involvement in weekly options. Additionally, Sebi has extended the deadline for Qualified Stock Brokers (QSBs) to set up necessary systems and processes for optional T+0 rolling settlement in the equity cash market.
