Sebi chief Tuhin Kanta Pandey denies ban on weekly options expiry

Sebi Chairman Tuhin Kanta Pandey rejects reports of ending weekly options expiries, says reforms in derivatives will undergo full market consultation before adoption

Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (Sebi), on Wednesday dismissed reports suggesting an end to weekly options expiries or any discussions with the finance ministry on the matter, calling such reports “speculative”.

 

Speaking on the sidelines of the annual Association of Portfolio Managers in India (APMI) conclave in Mumbai, Pandey acknowledged the need for reforms in the equity derivatives segment.

 

He said there has been no communication between Sebi and the finance ministry regarding weekly expiries.

 

“We need some reforms. But what will be the nature of those reforms and how will it be treated — we discuss it with the markets. Whenever we envisage such concrete measures, we will certainly inform the market and come out in the open for consultations,” Pandey clarified. 

Shares of BSE fell 3.6 per cent in early trade but recouped all losses to end almost a per cent higher at ₹2,388. Shares of the exchange are down 21 per cent from their peak of ₹3,030 on June 10.

 

Since November 2024, Sebi has introduced several measures to curb speculation in the derivatives market following retail investor losses and alleged cases of manipulation, such as the Jane Street incident. These measures include restricting weekly contracts to one index per exchange and increasing contract sizes. Additionally, the Indian market is transitioning to a delta-based approach for calculating open interest, along with a revision of marketwide position limits.

 

These regulatory steps have contributed to a decline in futures and options volumes — from a peak of ₹537 trillion in September 2024 to ₹381 trillion as of July 2025. Sebi has also advocated for longer-term contracts, arguing that an over-reliance on short-term instruments may hinder capital formation. 

 

Addressing the APMI event, Pandey outlined recent initiatives to strengthen portfolio manager governance, covering benchmarking, performance reporting, investment limits, and improved disclosures.

 

“At APMI’s request, Sebi has set up a working group to address the concerns of custodians, depositories, and other market participants,” he said.

 

As of June 30, 479 portfolio managers are registered with Sebi.

 

Pandey assured the industry that the comprehensive overhaul of portfolio management services (PMS) regulations in 2020 does not preclude further regulatory improvements to achieve “optimal regulation”.

 

He also urged the industry to prioritise clear communication and enhance investor awareness, especially given the growing demand for customised wealth management solutions beyond traditional mutual funds.

 

“PMS edge is its flexibility in delivering tailormade strategies, but the industry must demonstrate that customisation is a consistent capability, not just a slogan,” said the Sebi chief.

 

He further urged portfolio managers to communicate performance claims responsibly and formally document any strategy changes.

 

“APMI and the industry must curb misleading claims being made by a few registered portfolio managers. Such exaggerated performance claims undermine trust and could stall growth of this industry,” Pandey cautioned.