Sebi's Bold Move: Changing the Landscape of Equity Derivatives

Sebi is set to issue new directions on the expiry of equity derivatives contracts this month. The focus is on optimizing expiry dates and enhancing regulatory frameworks. Additionally, Sebi is exploring electricity derivatives to hedge against energy sector volatility, while promoting technology-driven oversight and regulation simplification.

The Securities and Exchange Board of India (Sebi) is poised to roll out new directives regarding the expiration schedules for equity derivatives contracts by the end of this month. Chairman Tuhin Kanta Pandey announced this development as Sebi analyzes feedback from a recently issued consultation paper.

The consultation paper, released in March, suggested standardizing the expiry dates for equity derivatives across all exchanges to either Tuesdays or Thursdays, optimizing the time interval between expiries. This proposal aims to prevent designating Mondays or Fridays as expiry days, thereby optimizing trading workflows.

Concurrently, Sebi is exploring the future of electricity derivatives as a means to mitigate energy sector volatility. Chairman Pandey highlighted the importance of leveraging technology for regulatory oversight and simplifying outdated regulations to foster a thriving securities market.

(With inputs from agencies.)