Sebi's directive on F&O expiry dates this month, says Chairman Tuhin Kanta Pandey

Sebi's directive on F&O expiry dates this month, says chairman Tuhin Kanta

SEBI Chairman Tuhin Kanta Pandey on May 22 said that the market regulator will come up with a circular on F&O expiry day this month itself. While speaking at ASSOCHAM 16th Capital Market Conference, he added that SEBI has proposed to limit the expiries of all equity derivatives contracts of an exchange to Tuesdays or Thursdays.

Notably, the shares of BSE dropped nearly 4.5% after a CNBC-TV18 report suggested that SEBI is likely to grant NSE Tuesday as the day for its expiry.

This comes after a SEBI committee responsible for advising the regulator on secondary market related regulations met on May 7. Moneycontrol had reported the committee discussed index options limit and the fixing of expiry days.

SEBI in its March 27 draft circular had proposed that expiry of all equity derivatives contracts of an exchange will be uniformly limited to one of either Tuesdays or Thursdays. Every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day -- either Tuesday or Thursday. Also, besides benchmark index options, all other equity derivatives contracts expiry will be in the last week of every month on their chosen day i.e. Tuesday or last Thursday of the month.

SEBI has also proposed that exchanges will have to seek prior approval of regulator before modifying the expiry days.

While speaking at the event on May 22, SEBI Chairman also gave an update about NSE's IPO. "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 told reporters outside ASSOCHAM 16th Capital Market Conference.