Shares of market infrastructure and brokerage companies came under pressure on Thursday after SEBI Chairman Tuhin Kanta Pandey indicated that the regulator is considering longer tenures for equity derivative contracts.
At midday, BSE Ltd. slipped nearly 4% to ₹2,423, Angel One Ltd. dropped close to 3% to ₹2,639, and Central Depository Services (India) Ltd. (CDSL) gave up gains to trade at ₹1,580. The declines follow Pandey’s remarks that rising retail activity in derivatives has prompted the regulator to explore stricter measures.
Speaking at the FICCI Annual Capital Market Conference, Pandey said there is a need to extend the maturity of equity derivative contracts. He added that a consultation paper will soon be issued to gather feedback on this proposal.
The SEBI chief noted that while derivatives trading has surged in recent years, the regulator has already taken steps to limit contract expiries and increase lot sizes to curb speculative activity. Extending tenure is now being viewed as the next logical step to ensure stability and reduce risks in the fast-growing market.
The commentary sparked immediate profit-booking in exchange and brokerage stocks, which have been among the biggest beneficiaries of record trading volumes. Analysts believe that while structural growth drivers remain intact, near-term uncertainty around the proposed reforms is likely to keep these counters volatile.
