Latest news with #AnanthNarayan
Hans India
3 days ago
- Business
- Hans India
No plans to curb weekly F&O expiries: Sebi chief
Mumbai: Sebi Chairman Tuhin Kanta Pandey on Wednesday termed media reports about curbing weekly expiries as 'speculative.' 'I am not aware of any such communication. Media reports are speculative, what we have been saying is out in the open,' the SEBI Chairman added that reforms are needed, but the nature of those reforms is determined through a process. Following his statement, BSE shares entered the green zone after declining during the morning hours. BSE shares were trading at Rs 2,400, up Rs 33 or 1.41 per cent as of 2.30 pm. The Nifty Capital Markets index also entered the green zone following the SEBI Chairman's comment, advancing 2.36 per cent after experiencing an intraday decline of over 1 per cent. Shares of Angel One, Motilal Oswal, UTI AMC and CAMS saw a 0.45 per cent to 1.41 per cent increase. After reports surfaced on Tuesday that the market regulator and government are considering curbing weekly expiry to reduce speculation, shares of BSE and other capital market stocks started dipping and extended their losses today. Last month, SEBI's Whole-Time Member Ananth Narayan had expressed concerns at the surge in F&O contracts and also said that the regulator would consider improving the quality of the F&O market 'by extending the tenure and maturity of the products and solutions on offer.
News18
3 days ago
- Business
- News18
SEBI Chairman Denies Plans To Curb Weekly Derivatives Expiry
Last Updated: SEBI Chairman Tuhin Kanta Pandey denied reports of curbing weekly derivatives expiry, calling them speculative. SEBI is evaluating ways to reduce short-term speculation. Sebi Chairman Tuhin Kanta Pandey SEBI Chairman Tuhin Kanta Pandey denied reports suggesting that the market regulator plans to curb weekly derivatives expiry. He said the reports as 'speculative" as reported by CNBC TV-18. His comments come amid a sharp decline in shares of BSE and other capital market-linked stocks for the second straight day. However, stocks recovered substantially to close in the green. The fall was triggered by reports that SEBI, in coordination with the Finance Ministry, was exploring ways to reduce speculative trading—possibly by scrapping weekly expiry contracts and replacing them with fortnightly or monthly expiries. On August 5, CNBC-TV18 had reported that the government and SEBI were holding talks to reduce the dominance of options trading and boost activity in the cash segment. According to the report, officials believe that weekly expiry is being increasingly used for speculation rather than genuine hedging, prompting discussions on regulatory changes. Last month, SEBI whole-time member Ananth Narayan had flagged concerns over the growing share of short-term F&O contracts, indicating that the regulator was evaluating ways to enhance the quality of the derivatives market. Narayan said SEBI could look at 'extending the tenure and maturity of products" to reduce excessive short-term speculation and encourage longer-term participation. A new study by the Indian market regulator a few months back, analysing the performance of individual traders in the equity derivative segment between December 2024 and May 2025, had revealed that 91 per cent incurred a net loss in EDS in FY2025. This followed the measures to tighten risks in equity derivatives by SEBI in a gradual manner starting from May 2024. It also marked a jump of 41 per cent from the previous study in FY2024. However, the number of unique investors trading in EDS down by 20 per cent in FY2025 compared to the previous year. The study also highlights that India has continued to see relatively very high level of trading in EDS compared to other markets, particularly in index options. Index options turnover, year on year, is down by 9% (in premium terms) and 29% (in notional terms). However, compared to 2 years ago, index options volume is up by 14% (in premium terms) and 42% (in notional terms). view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
4 days ago
- Business
- Economic Times
BSE, other capital market stocks fall up to 3% for second straight day amid regulatory concerns
Capital market stocks continued to reel under selling pressure for the second straight day on Wednesday, sliding up to 3.5%, as investor sentiment remained weak amid ongoing concerns over potential regulatory tightening by India's market watchdog. ADVERTISEMENT The persistent decline comes in the wake of reports suggesting that SEBI may introduce measures to curb speculative activity in the derivatives market. BSE shares registered the steepest drop, slipping by 3.2% to hit an intraday low of Rs 2,921.30, while Angel One dropped 2%. Shares of CDSL also fell by 2.7% to Rs 1,524.20. The drag on investor confidence stems from speculation that the Securities and Exchange Board of India (SEBI) is considering significant changes to the current structure of weekly expiry contracts. One of the key proposals under discussion is reportedly a shift from the present weekly expiry framework to a bi-monthly or monthly format, in a bid to cool off excessive short-term to previous reports, the regulatory rethink may also involve collaboration with the Ministry of Finance, which is believed to have flagged concerns about the limited long-term economic contribution of the current weekly expiry proposals under evaluation include a possible revision of the margin framework—raising margin requirements for options trading while easing them for cash market trades—to disincentivize speculative strategies and reward longer-horizon investing. ADVERTISEMENT A revision in the Securities Transaction Tax (STT) is also reportedly on the table, with regulators mulling a potential hike in STT for options trades and a corresponding cut in cash market STT to shift trader focus toward more stable market segments. However, any changes to STT are likely to be timed around next year's Union regulatory discussions follow earlier remarks from SEBI whole-time member Ananth Narayan, who recently highlighted the growing dominance of short-duration F&O contracts in market volumes. He noted that structural reforms are under consideration, including longer-tenure derivative products and broader product offerings to reduce the speculative tilt in the derivatives ecosystem. ADVERTISEMENT The urgency for reform is further underscored by SEBI's own data. A study released on July 7 revealed that while the number of unique traders in the derivatives segment fell 20% year-on-year, the figure was still 24% higher than two years ago. The sharpest fall was seen in traders with turnover under Rs 1 lakh, even though this group continued to see the highest inflow of new the study also reported that net losses for retail investors widened 41% YoY to Rs 1.05 lakh crore in FY25, up from Rs 74,812 crore in FY24, after including transaction costs. The proportion of retail traders ending up in losses remained alarmingly high, with 91%—or 9 out of every 10—retail traders registering net losses, a trend consistent with past findings. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
5 days ago
- Business
- Economic Times
BSE, other capital market stocks slide up to 5% after report flags possible weekly expiry curbs by Sebi
Capital market stocks came under notable selling pressure on Tuesday, falling up to 5%, following reports that India's market regulator may be planning tighter controls to address speculative trading activity. ADVERTISEMENT Investor sentiment turned cautious after concerns emerged around potential curbs on weekly expiry derivatives, a move seen as an attempt to dampen short-term speculation. After these reports, the shares of BSE took the sharpest hit, falling 5% to their day's low of Rs 2,360, followed by Angel One shares, which tumbled 3%. Meanwhile, the shares of CDSL and Motilal Oswal slid by 1.9% and 1.1% respectively. According to a report by Zee Business, the Securities and Exchange Board of India (SEBI) is reportedly exploring a series of regulatory changes, including limiting the frequency of weekly could mean shifting from the current weekly expiry format to a bi-monthly or even monthly cycle. The proposal is part of a broader consultation effort aimed at reducing the pace of speculative trades in the options report cited sources familiar with the matter, adding that the Ministry of Finance is also involved in these discussions and has flagged concerns that the current weekly expiry framework may be contributing little to long-term economic value. ADVERTISEMENT Among the other ideas being considered, SEBI is also evaluating adjustments to the margin framework. This includes raising margin requirements for options trading while simultaneously easing margin obligations for cash market proposal under review is a potential tweak to the Securities Transaction Tax (STT). Officials are reportedly mulling a hike in STT on options trading to curb excessive speculation and a parallel cut in STT on cash market trades to incentivize more stable participation. ADVERTISEMENT However, Zee Business noted that any move on STT may only be feasible after the Union Budget next developments align with earlier remarks from SEBI whole-time member Ananth Narayan, who, just last month, voiced concerns over the overwhelming share of short-term F&O contracts in overall market volumes. He indicated that the regulator is considering long-term structural reforms to improve the quality of the derivatives market. This includes exploring longer-tenure contracts and more diversified product offerings to shift focus away from purely speculative bets. ADVERTISEMENT The regulatory introspection comes at a time when SEBI's own studies point to rising risks for retail participants in the F&O space.A study released on July 7 revealed that while the number of unique individual traders in the derivatives market dropped by 20% year-on-year, it still remained 24% higher than two years ago. Notably, the sharpest drop was observed among traders with a total turnover of less than Rs 1 lakh, even though this segment simultaneously saw the largest addition of new retail investors compared to 2023. ADVERTISEMENT SEBI's study also showed that net losses for retail participants widened by 41% year-on-year to Rs 1,05,603 crore in FY25 from Rs 74,812 crore in FY24, after factoring in transaction costs. The proportion of retail investors incurring losses remained consistently high, with 91%, roughly 9 out of every 10, ending up in the red, in line with previous findings. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
30-07-2025
- Business
- Business Standard
Jane Street seeks 6 more weeks to reply to Sebi in options trade case
Jane Street Group LLC has sought six more weeks from India's securities regulator to prepare its defense against market manipulation allegations, though it may get fewer, according to a person familiar with the matter. The Securities and Exchange Board of India is considering granting about four more weeks to the US trading firm, said the person, asking not to be identified discussing a private matter. The regulator had previously given Jane Street 21 days to submit its arguments to the preliminary findings of an investigation into its controversial Indian options trades. The deadline expired last week. The situation remains fluid and Sebi board member Ananth Narayan could still decide to give the firm more time, the person said. Jane Street declined to comment while Sebi didn't respond to a request for comment. Jane Street said in a statement on Monday it is engaging 'constructively' with Sebi and has requested more time to respond to the regulator's interim order dated July 3, without elaborating. Last week, Sebi lifted Jane Street's temporary trading ban after the firm deposited 48.4 billion rupees ($556 million) in alleged 'unlawful gains' into an escrow account. The clampdown has pitted the New York-based trading giant against the local regulator in the world's largest equity derivatives market by contracts. The outcome of the case could carry implications for other global high-speed trading firms that have flocked to India in recent years, drawn by the explosive growth in the equity options space. Jane Street told its employees earlier this month that Sebi made 'many erroneous or unsupported assertions' about its trading activity in the country, and the firm intends to defend itself against the accusations including exploiting thin liquidity in the cash and futures segments to manipulate prices. The firm is expected to argue that its trades were a response to outsized demand from retail investors, Bloomberg News reported Tuesday. Once Jane Street submits its response, Sebi's Narayan — who signed the July 3 order — will review the arguments before likely issuing a new directive. That order could confirm the initial findings and set a time line for completing the investigation.
