Shares of BSE Ltd. fell nearly 4% on Thursday, trading at ₹2,423 on the NSE after slipping over ₹100 intraday. The decline comes as the Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey indicated fresh regulatory changes aimed at the equity derivatives market.
Pandey, speaking at an industry event in Mumbai, said the regulator is examining ways to increase the tenure and maturity of equity derivative contracts. The move is aimed at curbing excessive speculation while encouraging stability in longer-term trading.
In recent years, derivatives trading volumes have surged, significantly boosted by participation from retail investors. To temper risks, SEBI had earlier limited the number of contract expiries and raised lot sizes to make derivative trades more expensive. The latest remarks suggest the regulator is considering further structural reforms to balance growth with market safety.
Pandey also noted that SEBI is working with the Ministry of Corporate Affairs and Indian stock exchanges to build a regulated information platform for pre-IPO companies. The initiative is expected to bring greater transparency to India’s booming unlisted market, where investor appetite for start-up and growth-stage firms remains high.
The comments triggered a sharp reaction in BSE’s stock, which has been one of the strongest performers over the past year amid rising equity volumes and strong retail participation. Despite Thursday’s fall, the stock remains significantly above its 52-week low of ₹887.
Market watchers said the focus will now shift to SEBI’s detailed proposals on derivatives. Any measures impacting contract liquidity, expiry cycles, or trading costs could directly affect exchanges like BSE and NSE, which derive significant income from derivative transactions.
