SEBI Chairman Tuhin Kanta Pandey has dismissed media reports suggesting a potential curb on weekly futures and options expiries, calling them speculative and unfounded. “I am not aware of any such communication. Media reports are speculative, what we have been saying is out in the open,” Pandey stated on Wednesday, adding that while reforms are necessary, they are determined through a structured process.
His remarks triggered a recovery in capital market stocks, with BSE shares climbing to Rs 2,400, up Rs 33 or 1.41 per cent by 2.30 pm. The Nifty Capital Markets index also rebounded, gaining 2.36 per cent after an earlier intraday dip of over 1 per cent. Stocks of Angel One, Motilal Oswal, UTI AMC, and CAMS rose between 0.45 per cent and 1.41 per cent.
The market had reacted negatively on Tuesday following reports that SEBI and the government were considering curbs on weekly expiries to reduce speculative trading. The sell-off extended into Wednesday morning before reversing course after Pandey’s clarification.
Last month, SEBI Whole-Time Member Ananth Narayan voiced concerns over the surge in F&O contracts, suggesting that the regulator may explore extending the tenure and maturity of derivative products to improve market quality. Narayan highlighted the disproportionate turnover in index options on expiry days, often 350 times higher than the underlying cash market, calling it an unhealthy imbalance with potential adverse consequences.
A SEBI study released in July 2025 revealed a 20 per cent year-on-year decline in retail investor participation in the F&O segment, though the figure was still 24 per cent higher than two years ago. The majority of those exiting the segment were traders with a total turnover below Rs 100,000. Retail investors incurred losses of nearly Rs 1.06 trillion in FY2025, marking a 41 per cent increase from the Rs 748.1 billion loss recorded in FY2024.
