Is Shutting Down Weekly F&O Expiries an Option? Tuhin Kanta Pandey Responds
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Synopsis
Tuhin Kanta Pandey, Chairman of SEBI, emphasizes the regulator's commitment to a phased approach for any changes in the futures and options (F&O) segment. The decision to halt weekly expiries is off the table, as it serves many market participants. The regulator is currently analyzing data on F&O trading patterns to assess market impacts.
Key Takeaways
- SEBI is not considering ending weekly F&O expiries.
- Changes to the F&O segment will be phased in gradually.
- SEBI is analyzing data to evaluate market impacts.
- Measures in the derivatives sector are being implemented.
- QSBs received an extension for T+0 settlement system readiness.
Mumbai, Oct 31 (NationPress) The Chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, stated on Friday that any modifications to the futures and options (F&O) segment will be introduced in a gradual and measured way, stressing that discontinuing weekly expiries is not being considered.
“We cannot simply terminate weekly F&O expiries. Numerous market participants rely on it,” Pandey remarked during an event held in Mumbai.
To assess the broader market implications of F&O trading behaviors, the SEBI head mentioned that the regulator is currently collecting and scrutinizing substantial data regarding these patterns, which will be published in the form of a consultation prior to any further actions.
Furthermore, he indicated that SEBI has already enacted several measures in the derivatives market, some of which have yet to take effect.
Previously, reports indicated that the market regulator intended to abolish weekly F&O expiries to improve cash market trading and reduce speculation.
Pandey's comments come amidst calls for enhanced regulations in the derivatives market due to rising concerns about escalating speculative activity and the participation of retail investors in weekly options.
Moreover, SEBI has extended the deadline for Qualified Stock Brokers (QSBs) to implement the necessary systems and processes for the optional T+0 rolling settlement in the equity cash market.
"Taking into account the challenges presented by QSBs in ensuring timely system readiness before November 01, 2025, and the request for an extension to ensure smooth implementation, it has been decided to prolong the timeline for QSBs to establish the required systems and processes for enabling seamless investor participation in the optional T+0 settlement cycle," as stated in the SEBI circular.
The market regulator has confirmed that a revised timeline will be provided later to allow brokers sufficient time to ensure a smooth process for investors participating in the optional T+0 settlement cycle.
This decision was made following feedback from QSBs highlighting operational challenges in meeting the previous deadline of November 1, 2025.
Point of View
It is crucial to recognize the balance SEBI must strike between regulation and market freedom. The move to maintain weekly F&O expiries reflects a commitment to supporting active market participants while also addressing growing concerns regarding speculation. It demonstrates a thoughtful approach to market stability.
NationPress
21/12/2025
Frequently Asked Questions
Why is SEBI not considering shutting down weekly F&O expiries?
SEBI believes that many market participants actively utilize weekly F&O expiries, making it impractical to eliminate them outright.
What measures has SEBI implemented in the derivatives sector?
SEBI has enacted several measures in the derivatives market, some of which are yet to take effect, as they prepare for future market stability.
What is the optional T+0 rolling settlement?
The optional T+0 rolling settlement allows for quicker settlement of trades, potentially enhancing liquidity in the equity cash market.
What data is SEBI analyzing regarding F&O trading?
SEBI is collecting and analyzing substantial data on F&O trading patterns to assess their broader impact on the market before making any changes.
What challenges did QSBs face regarding the implementation timeline?
QSBs highlighted operational difficulties in meeting the previous deadline, prompting SEBI to extend the timeline for system readiness.
