The Securities and Exchange Board of India (SEBI) is holding its much-anticipated board meeting on Friday, September 12, where several major changes for the markets are expected to be unveiled. Among the top items on the agenda are reforms in F&O expiries, tweaks to IPO norms, and proposals aimed at boosting cash market volumes.
Possible transition to monthly expiries
Sources told CNBC-TV18 that SEBI is planning a transition to monthly expiries with a defined glide path, instead of the current system of weekly expiries. The regulator is also said to be considering the idea of having the same day expiry across all exchanges, in a bid to streamline the derivatives market.
A consultation paper on this issue is expected to be issued by October, with detailed recommendations for stakeholder feedback.
IPO norms and shareholding thresholds
In addition to derivatives, SEBI is likely to ease IPO eligibility norms for very large companies. The proposals include allowing companies more time to meet the minimum public shareholding (MPS) threshold, reducing immediate pressure on issuers while ensuring gradual compliance.
Market expectations ahead of the announcement
Speculation around these reforms has already created ripples in the market. Earlier, SEBI Chairman Tuhin Kanta Pandey had highlighted at FICCI’s Annual Capital Market Conference on August 21 the need to increase the tenure of equity derivatives. Following his remarks, shares of both BSE and Angel One fell up to 8%, underscoring the market sensitivity to expiry changes.
What’s next
All eyes are now on SEBI’s press conference later this evening, where the regulator is expected to formally announce these changes and share further details on the glide path for expiries, IPO relaxations, and steps to improve liquidity in the cash market.
Stay tuned for more live updates as the SEBI board meeting unfolds.
