SEBI Mulls Extension in Equity Derivatives Tenure Amid Stakeholder Consultations
SEBI's Chairman Tuhin Kanta Pandey reveals that the regulator is considering extending the tenure of equity derivatives, a move motivated by high trader losses in the segment. SEBI's recent analysis indicates a need for reform, despite some improvements following regulatory changes in 2024.
- Country:
- India
In a significant development, the Securities and Exchange Board of India (SEBI), led by Chairman Tuhin Kanta Pandey, is contemplating an extension in the tenure of equity derivatives. This was disclosed during the 22nd annual Capital Markets Conference organized by FICCI in Mumbai. Pandey emphasized that any such move will be carried out after thorough consultations with all stakeholders.
Highlighting the critical need to maintain quality and balance in the Futures and Options (F&O) segment, Pandey pointed out that a staggering 91% of individual traders faced net losses in the Equity Derivatives Segment (EDS) in the fiscal year 2024-25, continuing a trend observed in the previous year.
This evaluation by SEBI comes in response to media reports suggesting reduced investor losses after new measures were implemented on October 1, 2024, aimed at fortifying the equity index derivatives framework. Despite setbacks, SEBI's analysis showed a mixed impact on trading volumes and individual turnover, prompting the ongoing review.
(With inputs from agencies.)
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