SEBI Considers Shift to Monthly Expiries in Derivatives Market

The Securities and Exchange Board of India (SEBI) is currently evaluating a proposal to shift exclusively to monthly expiries for equity derivatives as per a news report by CNBC-TV18.

As per news report, stock exchanges have also supported the move, aligning with SEBI’s broader objective of streamlining the derivatives market by reducing the number of expiry cycles.

SEBI Chairman Take on Derivatives

Speaking at the FICCI Annual Capital Market Conference, SEBI Chairman Tuhin Kanta Pandey emphasised the need to extend the duration of equity derivative contracts. He revealed that a consultation paper on this subject would be released soon to seek public and stakeholder feedback.

Following the Chairman’s comments, shares of market-linked firms such as BSE and Angel One declined sharply, each dropping over 6%.

This development follows SEBI’s February 2025 consultation paper, which had proposed tighter norms around intraday and end-of-day position limits in the options segment.

Market experts stated that approximately 85% of the revenue generated by discount brokers and stock exchanges comes from derivatives trading. They anticipate a revenue decline of around 35% to 40% for the NSE and a sharper 50% to 60% impact on the BSE’s topline. Full-service brokerages are also expected to experience a revenue dip of about 10% to 15%.

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