The debate around weekly options expiry has intensified, with brokers and stock exchanges urging the Securities and Exchange Board of India (SEBI) to continue the current weekly expiry structure, CNBC-TV18 reported citing sources.
According to the report, SEBI has received a large number of representations from various market participants requesting that the weekly expiry framework be retained. Exchanges are also likely to support this stance, citing strong market participation and liquidity benefits.
However, sources told CNBC-TV18 that SEBI is still in the process of collecting and assessing data on the derivatives segment, and the consultation process has not yet formally begun. The regulator intends to analyse the feedback in detail and is not expected to make any decision in haste.
The issue has gained significance as SEBI weighs concerns over excessive speculation and retail exposure in derivatives trading. Any potential changes to the weekly expiry mechanism could impact market volumes, brokerage revenues, and exchange activity — particularly at a time when the BSE has seen a sharp rise in derivative turnover following the introduction of its weekly index options.
Notably, SEBI Whole-Time Member Ananth Narayan, who currently oversees the derivatives segment, is set to retire on October 9, which could influence the timing of future regulatory actions.
Stocks such as BSE, Angel One, and CDSL remain in focus as the industry awaits further clarity from the market regulator.
