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SEBI Pandey signals raising tenure, maturity of equity derivatives
This story was originally published at 14:04 IST on 21 August 2025
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MUMBAI – The Securities and Exchange Board of India is looking for ways to increase the tenure and maturity of equity derivatives contracts, Reuters reported quoting Chairman Tuhin Kanta Pandey as saying at the Federation of Indian Chambers of Commerce and Industry conference Thursday. "We will consult stakeholders on ways to improve and carefully calibrate the tenor and maturity profile of derivative products so that they support both hedging and long-term investing," Business Standard reported Pandey as saying at the event.
The SEBI is discussing proposals to move only to monthly expiries and doing away with weekly derivatives, CNBC-TV18 reported, citing sources. With the regulator's intention being a reduction in the number of expiries as a whole, exchanges have also recommended the use of monthly expiries, sources added. SEBI will soon issue a consultation paper in this regard, the report said.
A surge in derivatives trading, which has also been driven by retail investors, prompted the regulator to limit the number of contract expiries and increase lot sizes to make such trades more expensive, Reuters reported.
A study conducted by the regulator showed that the net loss made by the country's retail individual traders in the equity derivatives segment widened 41% to INR 1.06 trillion in 2024-25 (Apr-Mar). Top 13 stockbrokers, with a combined client base of 9.6 million unique traders were included in the study, against a total market size of 10.7 million traders.
Earlier in June, the market regulator agreed to the revision of the expiry day for the weekly and monthly derivatives contracts by the National Stock Exchange to Tuesdays and those on the BSE to Thursdays from Sept. 1. End
Compiled by Arya S. Biju
Filed by Akul Nishant Akhoury
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