SEBI Chairman Tuhin Kanta Pandey stated that an outright shutdown of weekly options is impractical, highlighting the sensitive nature of the derivatives market. SEBI has implemented measures to curb speculation and will continue monitoring data for informed policy decisions.
In a recent statement addressing the ongoing debate over weekly futures and options expiries, SEBI Chairman Tuhin Kanta Pandey emphasized that shutting down the weekly options market abruptly is not a practical solution. Speaking at the Business Standard BFSI Summit, Pandey acknowledged the complexities and nuances in regulating this segment, which is widely used by various market participants.
Key Highlights:
Market Sensitivity: Weekly derivatives are a sensitive subject with significant market participation, including retail and institutional investors.
Regulatory Measures: SEBI has already introduced restrictions, such as limiting expiry days and allowing trading in only one index on a day, aiming to reduce speculative trading.
Retail Investor Risks: Studies show over 90% of retail traders in futures and options incur losses, a concern SEBI is actively addressing.
Data-Driven Policy: SEBI will continue analyzing trading patterns and conduct public consultations before making any policy changes.
Phased Implementation: Some reforms are already in place, with additional measures slated for implementation by December 2025.
Balanced Approach: The regulator favors a calibrated, consultative method to safeguard market integrity without disrupting popular trading mechanisms.
Pandey’s remarks underscore SEBI’s commitment to balancing investor protection and market functionality, ensuring orderly growth in India’s derivatives market.
Sources: Economic Times, CNBC-TV18, Business Standard, SEBI official releaseIn a recent statement addressing the ongoing debate over weekly futures and options expiries, SEBI Chairman Tuhin Kanta Pandey emphasized that shutting down the weekly options market abruptly is not a practical solution. Speaking at the Business Standard BFSI Summit, Pandey acknowledged the complexities and nuances in regulating this segment, which is widely used by various market participants.
Key Highlights:
Market Sensitivity: Weekly derivatives are a sensitive subject with significant market participation, including retail and institutional investors.
Regulatory Measures: SEBI has already introduced restrictions, such as limiting expiry days and allowing trading in only one index on a day, aiming to reduce speculative trading.
Retail Investor Risks: Studies show over 90% of retail traders in futures and options incur losses, a concern SEBI is actively addressing.
Data-Driven Policy: SEBI will continue analyzing trading patterns and conduct public consultations before making any policy changes.
Phased Implementation: Some reforms are already in place, with additional measures slated for implementation by December 2025.
Balanced Approach: The regulator favors a calibrated, consultative method to safeguard market integrity without disrupting popular trading mechanisms.
Pandey’s remarks underscore SEBI’s commitment to balancing investor protection and market functionality, ensuring orderly growth in India’s derivatives market.
Sources: Economic Times, CNBC-TV18, Business Standard, SEBI official releaseIn a recent statement addressing the ongoing debate over weekly futures and options expiries, SEBI Chairman Tuhin Kanta Pandey emphasized that shutting down the weekly options market abruptly is not a practical solution. Speaking at the Business Standard BFSI Summit, Pandey acknowledged the complexities and nuances in regulating this segment, which is widely used by various market participants.
Key Highlights:
-
Market Sensitivity: Weekly derivatives are a sensitive subject with significant market participation, including retail and institutional investors.
-
Regulatory Measures: SEBI has already introduced restrictions, such as limiting expiry days and allowing trading in only one index on a day, aiming to reduce speculative trading.
-
Retail Investor Risks: Studies show over 90% of retail traders in futures and options incur losses, a concern SEBI is actively addressing.
-
Data-Driven Policy: SEBI will continue analyzing trading patterns and conduct public consultations before making any policy changes.
-
Phased Implementation: Some reforms are already in place, with additional measures slated for implementation by December 2025.
-
Balanced Approach: The regulator favors a calibrated, consultative method to safeguard market integrity without disrupting popular trading mechanisms.
Pandey’s remarks underscore SEBI’s commitment to balancing investor protection and market functionality, ensuring orderly growth in India’s derivatives market.
Sources: Economic Times, CNBC-TV18, Business Standard, SEBI official release
