Why Is SEBI Reviewing Weekly Options Expiry Amid Industry Pushback?
About the Review
The Securities and Exchange Board of India (SEBI) has received a large number of representations concerning the continuation of weekly options expiry. According to CNBC-TV18 sources, several broker associations and market intermediaries have formally requested SEBI to allow the current system of weekly expiries to continue without major changes.
Industry Representations and Concerns
Both brokers and stock exchanges are reportedly in alignment on this issue. They believe weekly expiries play a vital role in maintaining liquidity and allowing effective risk management for short-term traders. Exchanges are also expected to approach SEBI officially to support the continuation of the system.
As per the information available, SEBI has not yet started the formal consultation process. The regulator is currently collecting and analysing data on derivatives turnover, participant concentration, and potential volatility concerns associated with weekly options trading.
Data-Based Approach Before Any Decision
Officials indicate that SEBI aims to study market-wide data comprehensively before arriving at a conclusion. There is no immediate plan to rush into a regulatory change. The decision, according to sources, will depend on feedback from various stakeholders and a cost-benefit assessment.
Market participants expect any change, if at all, to be implemented gradually and with sufficient transition time. The regulator’s focus appears to be on reducing speculative excesses while ensuring fair participation for all classes of traders.
Leadership Transition Adds Timing Sensitivity
The development also coincides with the upcoming retirement of SEBI Whole-time Member Ananth Narayan, who currently oversees the derivatives segment. He is scheduled to retire on October 9. His exit adds a timing layer to the ongoing policy review, as the decision-making process may extend until his successor takes charge.
Traders and brokers are closely tracking SEBI’s next steps. While there is no immediate disruption to the weekly expiry structure, the market remains alert to any regulatory signals.
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Investor Takeaway
💡 Weekly options remain a crucial instrument for retail and institutional participants alike. Any change in expiry frequency will likely be implemented after a detailed impact study and feedback assessment. For now, the continuity of the system appears probable until SEBI finalises its review.
Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
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