BSE Ltd shares fell as much as 5.6% to Rs 2,381.10 on the NSE, while Angel One shares slid 4.6% to Rs 2,597.
Speaking at the FICCI Annual Capital Market Conference in Mumbai, Pandey said, “There is a need to increase the tenure of equity derivatives.” He said that a consultation paper will be issued on extending the maturities of such contracts.
Pandey noted that a surge in derivatives trading, largely fueled by retail investors, has already led Sebi to limit the number of contract expiries and raise lot sizes to make trades more expensive.
Market risks in focus
India accounts for nearly 60% of global equity derivatives volumes, but retail traders have faced steep losses. A Sebi study showed retail investors lost Rs 52,400 crore in the year ended March 31, 2024, compared with gross profits of Rs 33,000 crore for proprietary traders and Rs 28,000 crore for foreign investors.
The regulator has recently tightened norms, including capping end-of-day exposure in options portfolios at Rs 1,500 crore. It is also weighing further restrictions on intraday index derivatives trading as part of efforts to contain systemic risks, people familiar with the matter told Reuters earlier this week.Pandey also said Sebi would work with the corporate affairs ministry and stock exchanges to build a regulated platform for information about pre-IPO firms.Also read | Sebi plans to raise tenure, maturity for equity derivatives: Tuhin Kanta Pandey
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