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SEBI to Finalize Equity Derivatives Expiry Framework by Month-End

The regulator reaffirms Tuesday and Thursday expiries, grants approval for electricity derivatives, and focuses on regulatory simplification.

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Overview

  • SEBI Chairman Tuhin Kanta Pandey confirmed that final directions on equity derivatives contract expiries will be issued by the end of May after reviewing consultation feedback.
  • The regulator has proposed standardizing contract expiries across exchanges to Tuesdays or Thursdays to improve market stability and spacing.
  • Exchanges will need SEBI approval before launching or modifying contract expiry or settlement days, ensuring regulatory oversight.
  • SEBI has granted in-principle approval for electricity derivatives to help hedge against volatility in the energy sector.
  • The regulator aims to simplify compliance by removing redundant provisions, leveraging technology for oversight, and ensuring robust investor protection.