SEBI starts consultation process for removal of weekly options expiry, reports CNBC-Awaaz; BSE, Anand Rathi fall up to 3%

SEBI starts consultation process for removal of weekly options expiry, reports CNBC-Awaaz; BSE, Anand Rathi fall up to 3%

Capital market stocks were under pressure on September 24 as CNBC-Awaaz reported, citing sources, that SEBI has started the consultation process for removal of weekly options expiry.

SEBI met large brokerage firms on consultation for derivative contracts, the channel reported adding that the market regulator has asked brokerages to give suggestions in writing.

SEBI is likely to engage with other stakeholders, including exchanges, before floating final consultation paper, the channel added.

On September 24, Nifty Capital Markets index fell 1.4% to close at 4,247. Anand Rathi and CAMS led the losses on the sectoral index by falling 3% and 2.7%, respectively.

IEX and CDSL fell 2.58% and 2.38%, respectively while BSE shares closed 2.4% lower at Rs 2,072 apiece.

The bearish sentiment on the capital market stocks was further heightened as benchmark indices fell for the fourth straight day.

Sensex closed 386.47 points or 0.47% lower at 81,715.63, and the Nifty ended 112.60 points or 0.45 percent lower at 25,056.90. About 1,535 shares advanced, 2,445 shares declined, and 143 shares unchanged.

On September 12, after the SEBI board meet, SEBI chairman Tuhin Kanta Pandey said "will get consultation paper (on ending weekly F&O expiry as and when ready".

"We will inform all participants transparently on weekly option decision. We will decide on any rules post floating consultation paper and following due process," Pandey added.