Are There Any Plans to Restrict Weekly F&O Expiries? Sebi Chairman Says No
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Synopsis
SEBI Chairman Tuhin Kanta Pandey refutes media speculation regarding restrictions on weekly F&O expiries, emphasizing the need for structured reforms. BSE shares reacted positively to his comments, amidst ongoing concerns about market speculation and retail investor losses in the F&O segment.
Key Takeaways
- SEBI Chairman denies plans to limit weekly F&O expiries.
- Market shares reacted positively following his comments.
- Concerns raised about speculation in the F&O market.
- Retail investors experienced significant losses in FY2025.
- Potential reforms to improve F&O market quality are being discussed.
Mumbai, Aug 6 (NationPress) - The Chairman of SEBI, Tuhin Kanta Pandey, addressed the media on Wednesday, dismissing reports suggesting a restriction on weekly expiries as "speculative".
He stated, "I am not aware of any such communication. Media reports are speculative; what we have been saying is out in the open," emphasizing the need for reforms that will be determined through a structured process.
Following his remarks, shares of the BSE saw a positive turnaround after experiencing a decline earlier in the day. At 2:30 pm, BSE shares traded at Rs 2,400, reflecting an increase of Rs 33 or 1.41%.
The Nifty Capital Markets index also rebounded, rising by 2.36% after an earlier dip of over 1%.
Stocks of Angel One, Motilal Oswal, UTI AMC, and CAMS experienced gains ranging from 0.45% to 1.41% following the Chairman's comments. This came after news surfaced on Tuesday that the market regulator and government might consider limiting weekly expiries to mitigate speculation, which led to a decline in BSE and other capital market stocks.
Last month, SEBI's Whole-Time Member, Ananth Narayan, raised concerns about the rising number of F&O contracts, indicating the need to enhance the quality of the F&O market by potentially extending the tenure and maturity of available products.
As highlighted by several experts, the Indian derivative market is unique in that on expiry days, the turnover in index options can be up to 350 times higher than that of the underlying cash market, resulting in an unhealthy imbalance with potential negative repercussions.
A SEBI study conducted in July 2025 revealed that the number of retail investors trading in F&O has decreased by 20% compared to the previous year, although it has risen by 24% over the last two years. Most of those leaving the F&O market had a total turnover of less than Rs 1 lakh.
Retail investors faced a staggering loss of nearly Rs 1.06 lakh crore in the F&O segment during FY2025, a 41% increase from the Rs 74,812 crore loss recorded in FY2024.
Point of View
It's crucial to approach this topic with a balanced perspective. Chairman Pandey's emphasis on structured reforms rather than abrupt restrictions reflects a commitment to maintaining a healthy market environment. The concerns around speculation and retail losses are valid, and it’s essential for regulators to ensure that the market remains accessible and equitable for all investors.
NationPress
19/08/2025
Frequently Asked Questions
What did the SEBI Chairman say about weekly F&O expiries?
The SEBI Chairman, Tuhin Kanta Pandey, described media reports about curbing weekly expiries as 'speculative' and emphasized that reforms will be considered through a structured process.
How did the market respond to the Chairman's comments?
Following the Chairman's remarks, BSE shares entered the green zone, with an increase of 1.41%, and the Nifty Capital Markets index also saw a rise.
What concerns did SEBI officials express regarding the F&O market?
SEBI officials have expressed concerns over the surge in F&O contracts and the significant imbalance in trading, particularly on expiry days.
How have retail investors fared in the F&O market recently?
Retail investors have faced substantial losses in the F&O segment, with a reported loss of nearly Rs 1.06 lakh crore in FY2025.
What changes might SEBI consider for the F&O market?
SEBI may consider extending the tenure and maturity of F&O products to improve market quality.
