BSE shares erased day's losses on October 31 after Securities and Exchange Board of India (SEBI) chief Tuhin Kanta Pandey said "we cannot just shut down weekly F&O expiries, many market participants are using this".
BSE shares fell 4% earlier on October 31 after SEBI chief said the market regulator will roll out measures on futures and options (F&O) in phased manner.
Speaking at an event in Mumbai, Pandey said the market regulator is collecting data related to F&O trading.
On October 31, BSE shares closed trading 1.5% lower at Rs 2,480 apiece.
Recent news reports said the market regulator is looking to remove weekly F&O expiries to reduce speculation in the market and improve cash market trading.
Investor participation has spread to cities beyond metros, said Pandey on October 31.
He said SEBI took series of measures to improve derivative market.
"This (weekly F&O expiry) is very sensitive subject and has a lot of nuances. There has been a problem in the derivatives market, which has been highlighted by SEBI," said Pandey at BS BFSI Summit.
"Need to see irrational exuberance is in control for smaller or lesser savvy market participants. How can we shut down the weekly options market just like that? SEBI will do further data crunching on weekly options issue," Pandey added.
A panel set up by SEBI to address concerns over conflicts of interest tied to its chairman and senior officials will submit a report by November 10, Pandey said on October 31.
If accepted, the recommendations would bring the SEBI in line with global practices.
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