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SEBI's F&O Stance: Why Weekly Expiries Won't Be Shut Down

SEBI Chairman Tuhin Kanta Pandey has made it clear that weekly F&O expiries won't be discontinued. The regulator is currently analyzing extensive data on derivatives trading patterns before making any changes. SEBI plans to implement reforms in a calibrated manner rather than sudden shutdowns. This comes amid growing concerns about retail participation and speculation in weekly options trading.

Key Points: SEBI Chief Pandey Rules Out Halting Weekly F&O Expiries

  • SEBI will implement F&O changes in phased manner after data analysis
  • Regulator gathering extensive data on F&O trading patterns for consultation
  • Weekly expiries continue amid concerns about retail speculation
  • SEBI extends T+0 settlement deadline for qualified stock brokers
  • Some derivatives reforms already implemented but not yet effective
2 min read

Cannot just shut down weekly F&O expiries: Tuhin Kanta Pandey

SEBI Chairman Tuhin Kanta Pandey confirms weekly F&O expiries will continue as regulator analyzes market data for calibrated reforms in derivatives segment.

"We cannot just shut down weekly F&O expiries. Many market participants are actively using it - Tuhin Kanta Pandey"

Mumbai, Oct 31

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday said that the market regulator will implement any changes to the futures and options (F&O) segment in a phased and calibrated manner, emphasising that a halt to weekly expiries is not under consideration.

Mumbai, Oct 31 (IANS) Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday said that the market regulator will implement any changes to the futures and options (F&O) segment in a phased and calibrated manner, emphasising that a halt to weekly expiries is not under consideration. “We cannot just shut down weekly F&O expiries. Many market participants are actively using it,” Pandey said while speaking at an event in Mumbai.

In order to evaluate the wider market impact of F&O trading patterns, the SEBI chief stated that the regulator is now gathering and analysing a large amount of data on these patterns, and the same will be released in the form of a consultation before moving forward.

Additionally, he noted that SEBI has already implemented some measures in the derivatives sector, some of which have not yet gone into effect.

Earlier, some reports suggested that the market regulator wants to eliminate weekly F&O expiries in order to enhance cash market trading and lessen market speculation.

Pandey's remarks coincide with calls for stricter regulation of the derivatives market due to growing concerns about the increasing speculative activity and retail participation in weekly options.

Earlier, SEBI extended the deadline for Qualified Stock Brokers (QSBs) to implement systems and processes required for the optional T+0 rolling settlement in the equity cash market.

"Considering the challenges highlighted by QSBs in ensuring the timely readiness of systems on or before November 01, 2025 and the request to extend the same for ensuring smooth implementation, it has been decided to extend the timeline for QSBs for putting in place the necessary systems and processes for enabling seamless participation of investors in optional T+0 settlement cycle,” according to the SEBI circular.

The markets regulator states that the revised timeline will be shared later to give brokers enough time to facilitate investors' smooth participation in the optional T+0 settlement cycle.

Following input from QSBs that highlighted operational difficulties in fulfilling the prior deadline of November 1, 2025, the decision was made.

- IANS

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Reader Comments

P
Priya S
But I'm concerned about the retail participation in weekly F&O. So many young investors are losing money in these speculative trades. SEBI should focus more on investor protection rather than just market convenience.
R
Rohit P
Phased approach makes sense. Market reforms need careful planning. Jhatke se kuch nahi hota. Data analysis and consultation before implementation is the right way forward for Indian markets. 📈
S
Sarah B
As someone who trades both in India and US markets, I appreciate SEBI's balanced approach. Weekly options are common globally, but the regulator should ensure proper risk management systems are in place.
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Vikram M
The extension for T+0 settlement shows SEBI is listening to brokers' concerns. This is good governance - understanding ground realities before enforcing deadlines. More regulators should work like this.
K
Kavya N
While I understand the need for weekly expiries, SEBI should mandate better education for retail investors. So many people jump into F&O without understanding the risks. Knowledge first, trading later! 📚

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