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Sebi plans a consultation paper to curb end F&O contracts, aiming for monthly expiries.
SEBI to float consultation paper to end weekly derivative contracts.
The market regulator Sebi (Securities and Exchange Board of India) is likely to release a consultation paper this month to end weekly F&O contracts, according to a report of CNBC TV-18. The move is earmarked as a push by the market regulator to nudge traders and investors towards long-term products, such as monthly expiries instead of weekly ones. Moreover, the regulator in the consultation paper will also pitch to make the same-day expiry across BSE and NSE, as added in CNBC TV-18 report.
SEBI Board is likely to be briefed on longer derivative tenures on September 12 with consultations with exchanges starting next week.
Weekly F&O (Futures & Options) contracts are short-term derivative instruments based on stocks or indices that expire every Thursday of the week, unlike traditional monthly contracts that expire only on the last Thursday of the month.
Shares of BSE, one of the exchanges, fell nearly 4 per cent after the report, with investors getting panicked over the implications to end weekly derivative contracts.
Earlier, Sebi chairman Tuhin Kanta Pandey hinted the need to increase the tenure of equity derivative and that there will soon be a consultation paper issue in this regard.
Sebi Tightens Noose After Stark Study
Tightening the noose on speculative trading, the Securities and Exchange Board of India (Sebi) has introduced a stricter framework for futures and options (F&O) trading effort in an effort to curb losses for retail investors.
The rules include increasing the minimum contract size and mandating upfront collection of option premiums.
For instance, Sebi has allowed only one weekly contract per exchange while also fixing the contract expiry days.
Sebi’s strict action on speculative trading followed its study last year revealing that 93 per cent of traders in the F&O contracts lose money.
It also said that over 75 per cent of those who have lost their money in F&O trading had an annual income of less than Rs 5 lakh. The study also highlighted that the percentage of loss-making traders increased from 89 per cent in FY22.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 11, 2025, 13:32 IST
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