BSE shares recovered from early losses on October 31 after SEBI chief Tuhin Kanta Pandey stated that weekly futures and options (F&O) expiries cannot be abruptly shut down, as many market participants rely on them. Earlier in the day, BSE shares had dropped 4% following Pandey’s announcement that the regulator would implement changes to F&O trading in a phased manner.
Speaking at an event in Mumbai, Pandey mentioned that SEBI is currently gathering data on F&O activity. BSE shares eventually closed 1.5% lower at Rs 2,480 apiece. Reports have indicated that SEBI is considering removing weekly F&O expiries to curb speculation and strengthen cash market trading, with investor participation now extending beyond major metro cities.
Pandey described weekly F&O expiries as a sensitive issue with many nuances, emphasizing the need to protect smaller or less-experienced investors from excessive risk. He added that the regulator will conduct further analysis before making changes. Additionally, a SEBI panel addressing potential conflicts of interest involving senior officials is expected to submit its report by November 10, which, if approved, would align SEBI’s practices with global standards.