MUMBAI: The Securities and Exchange Board of India (SEBI) will issue a circular this month to fix the expiry dates for equity derivatives contracts, Chairman Tuhin Kanta Pandey said on May 22.
Speaking at the 16th Capital Market Conference organised by ASSOCHAM, Pandey said SEBI has proposed that each exchange can fix expiries of all equity derivative contracts to either a Tuesday or a Thursday.
The move aims to bring uniformity across exchanges and address the recent trend of bourses shifting expiry days to boost trading volumes.
Pandey’s remarks follow a SEBI committee meeting held earlier this month that discussed various secondary market regulations, including expiry schedules and index options limits.
In a draft circular dated March 27, SEBI had proposed that exchanges be allowed to choose just one weekly expiry day – either Tuesday or Thursday – for their benchmark index options.
All other equity derivatives, including stock options and futures, would expire on the same weekday during the last week of every month.
Prior Sebi approval needed
Exchanges will also need prior approval from SEBI to change their chosen expiry day.
The market took note of the developments. Shares of BSE fell nearly 4.5 per cent on reports suggesting that NSE may be granted Tuesdays as its official expiry day, potentially affecting the recent surge in volumes BSE has seen from its Monday expiry.
Meanwhile, Pandey also said discussions between SEBI and the National Stock Exchange (NSE) regarding its long-awaited IPO are progressing.
“NSE and SEBI are talking. They are resolving the issues. I am very hopeful that it will be done soon and we will move forward,” he said.
NSE had filed its IPO draft prospectus back in 2016 and has since made multiple requests to SEBI seeking a no-objection certificate.
The regulator has raised concerns around governance, technology systems, and the ownership of the clearing corporation, which are now reportedly being addressed.
