SEBI whole-time member Ananth Narayan stated that the primary aim of restricting derivative trades is to reduce the “expiry day frenzy” in options trading. Narayan clarified that Sebi does not intend to ban derivatives but to mitigate systemic risks through measures like limiting weekly option expiries and increasing margins on expiry day. Highlighting the issue, he noted over 90% of index options trading occurs on expiry day, resembling gambling. In FY24, 92 lakh individuals lost Rs 51,869 crore in index derivatives. This move signals increased regulatory oversight on options trading close to expiry.
Sebi’s Plan to Curb Expiry Day Frenzy in Derivative Trades
