The Securities and Exchange Board of India (SEBI) has begun discussions on the future of weekly derivative contracts, according to sources cited by CNBC Awaaz. The regulator has engaged major brokerage firms, requesting written suggestions on a potential shift towards longer-duration derivative products. This move follows SEBI Chairman Tuhin Kanta Pandey’s earlier statement on August 21, where he indicated the regulator was exploring options for extended-tenure contracts.
On September 11, CNBC-TV18 reported that SEBI might release a consultation paper within a month, considering the phasing out of weekly F&O contracts and a shift to monthly expiries through a structured approach. The regulator is also reviewing the possibility of aligning expiry dates across exchanges, following NSE’s move to Tuesdays and BSE’s to Thursdays.
The upcoming consultation may also include proposals to limit retail participation in F&O trading through enforceable eligibility criteria. Additionally, SEBI aims to strengthen cash market volumes to offset any dip in retail derivative activity. Exchanges like NSE and BSE are expected to join the consultation process soon.