BSE shares fell 3% on September 11 after CNBC-TV18 reported that SEBI could float a consultation paper on ending weekly F&O contracts within a month.
The market regulator is planning transition to monthly expiries with defined glide path and may consider same-day expiry across exchanges, the channel reported citing sources.
SEBI Board is likely to be briefed on longer derivative tenures on September 12 with consultations with exchanges starting next week, added CNBC-TV18.
At 11:48 am on September 11, BSE shares were trading 3% lower at Rs 2,201 apiece.
At 12 pm on September 11, Nifty Capital Markets index was trading 1% lower at 4,292 with Angel One leading the losses by trading nearly 4% lower
Last month, SEBI chairman Tuhin Kanta Pandey spoke about the need to increase the tenure of equity derivatives and that there will soon be a consultation paper issued in this regard.
The chairman added that longer tenure derivatives is currently a 'thought process' and stressed that industry consultation would be done before any decision. "All this will be done in consultation, in what form, how, when... Yes (there will be a consultation paper). I can't tell you when, but that is the thinking process we have," Pandey had said.
The equity derivatives arena has been in the focus in the recent past, with the regulatory body taking various steps to curb the quantum of trading. For instance, Sebi has allowed only one weekly contract per exchange while also fixing the contract expiry days. Some market participants fear any move to increase the tenure of derivative contracts can impact volumes for BSE and broking companies.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.