SEBI Chairman Dismisses Reports on Curbing Weekly Expiry as 'False and Speculative'; BSE Share Price in Focus

On August 6, 2025, SEBI Chairman Tuhin Kanta Pandey addressed speculation around a potential curb on weekly expiry in derivatives trading, dismissing it as false. The clarification sparked a swift recovery in BSE shares and other capital market stocks that had faced sharp intraday losses.

SEBI Denies Weekly Expiry Curbs Amid Market Reaction

Following widespread reports speculating that SEBI might replace weekly expiry with a fortnightly or monthly cycle, capital markets witnessed a dip, with BSE shares falling to ₹2,282. However, the SEBI Chairman categorically denied such claims, labelling them as "false and speculative." This reassurance resulted in a turnaround in market sentiment. By 12:20 pm, BSE shares rallied 1% higher at ₹2,403.

Context Behind the Speculation

The speculation was triggered by an August 5 report from the media, which suggested that the Finance Ministry and SEBI were exploring measures to reduce speculative trading. The measures allegedly included reducing weekly expiries, tweaking margin requirements, and adjusting Securities Transaction Tax (STT) on options and cash markets.

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Derivatives Turnover Under Scrutiny

SEBI has recently expressed deep concerns about the imbalance between index option volumes and cash market turnover, particularly on expiry days. 

A study released by SEBI on July 7 showed that individual traders suffered losses of ₹1,05,603 crore in FY25, a 41% increase from ₹74,812 crore in FY24. Additionally, 91% of F&O traders continued to post losses, highlighting the speculative risks involved.

Conclusion

SEBI's prompt clarification put to rest rumours around derivative structure changes, leading to a rapid recovery in affected stocks. Meanwhile, regulatory discussions remain ongoing to improve the quality of the F&O market without hindering investor participation.

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