The Bombay Stock Exchange (BSE) share price saw a sharp selloff today, August 21, with its shares falling close to 7%. The fall came soon after SEBI Chairman Tuhin Kanta Pandey suggested that the regulator may look at extending the tenure of equity derivatives contracts.
Speaking at the FICCI Capital Market Conference in Mumbai, Pandey said SEBI will soon release a consultation paper to gather views on increasing the maturity of derivatives. The move, he added, is aimed at deepening the cash market and bringing balance between derivatives and spot trading.
Market reaction: BSE under pressure
The remarks triggered a sharp reaction in BSE’s stock. The share price of BSE dropped nearly 6% intraday.
Looking at the stock performance of BSE, in the past five trading sessions, the stock has slipped around 5%. Over the last month, BSE shares are down 5%. In the last six months, the share price of the company delivered a return of 24%.
Despite this short-term weakness, the stock remains a long-term outperformer, delivering 166% returns in one year and rising 31% year-to-date.
The exchange has a market capitalisation of Rs 96,930 crore, with its stock trading well above its 52-week low of Rs 887. At the same time, it remains below its 52-week high of Rs 3,030.
What SEBI said
At the FICCI Annual Capital Market Conference in Mumbai, SEBI Chairman Tuhin Kanta Pandey said there is a need to extend the maturity of equity derivatives. He also said that a consultation paper on the subject will soon be floated.
Pandey added that the regulator is exploring ways to strengthen derivatives while simultaneously boosting activity in the cash market, which has already doubled its volumes in the past three years.
Other stock performance
The share price of Angel One also saw a sharp selloff after the statement, with shares tumbling nearly 6% in intraday trading. So far in 2025, the company’s YTD performance is down 15%, and it currently has a market capitalisation of Rs 23,180 crore.
Similarly, share price of Motilal Oswal Financial Services slipped 2% in intraday trade today. The stock has delivered a negative return of 3% in 2025 so far.