SEBI Chairperson Tuhin Kanta Pandey indicated that the market regulator would not abruptly discontinue weekly futures and options (F&O) expiries. Responding to a question on the regulator’s stance, Pandey said that while concerns over retail participation in derivatives are valid, an outright ban is not feasible. He was speaking at the Business Standard BFSI Summit 2025.
“This is a sensitive subject and has a lot of nuances…there is a problem, and the problem is being highlighted by SEBI itself,” Pandey said. He added, “How can we just shut down the market like that?”
Following the SEBI chief’s comments, BSE and Angel One shares recovered from sharp intra-day lows and closed in the green.
Gradual measures already in motion
Pandey said SEBI has been taking a phased and data-based approach toward reforming the derivatives market. Some of these measures have already come into effect, while others will be implemented by December 1, 2025.
This includes restrictions on the number of expiry days and allowing trading in only one index on a given day.
SEBI to continue monitoring F&O activity
The SEBI chief added that the regulator is closely monitoring derivatives trading data and will continue to analyse patterns before making further policy changes.
“Any further development, we will put it out in the form of a public consultation so that everyone can then chew on that, and we will also do further data crunching,” Pandey noted.
BSE share price reverse losses after SEBI comments
BSE shares, which fell nearly 4% in early trade, erased losses after Pandey’s remarks and closed 1.53% higher.
The intra-day recovery followed a similar trend in Angel One shares, which also bounced from session lows. The share price of Angel One ended today’s trading session 0.7% down.
The initial decline came amid speculation that SEBI could impose stricter limits or even phase out weekly options, a key driver of trading volumes.