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Sebi chairman Tuhin Kanta Pandey clarified no ban on weekly derivatives, but hinted at future changes.
Sebi Chairman Tuhin Kanta Pandey
Sebi chairman Tuhin Kanta Pandey has clarified that the market regulator will not ban weekly derivatives contracts, as several reports earlier suggested, but hinted at the possibility of upcoming changes in the future and options (F&O) in a calibrated manner.
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.
Paney in an event in Mumbai added that the regulator was now gathering and analysing a large amount of data on trading patterns in the F&O segment. Sebi will release a consultation paper on weekly derivative contracts before any action on them. He also said that Sebi had already implemented some measures in the derivatives sector.
Sebi Gets Harder On Weekly Derivative Contracts
Sebi’s hard stance on weekly derivative contracts came amidst the stratospheric surge in volume in recent years due to quick money gains on speculation.
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.
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.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 02, 2025, 10:13 IST
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