Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), on Thursday, indicated that the regulator is considering increasing the tenure of equity derivatives after discussion with stakeholders.
Speaking to reporters on the sidelines of FICCI’s 22nd annual Capital Markets Conference in the financial capital, SEBI Chairman said, “All this will be done in consultation, in what form, how, when… Yes (there will be a consultation paper). I can’t tell you that but that is the thinking process we have…. That is qualitatively what we have to see…we have to be calibrated. If you look at my statement where i said we have to look at (it) in a calibrated manner.”
SEBI Chairman Pandey further indicated a need to ensure quality and balance in the F&O segment. The move has significance, as a recent SEBI analysis highlighted that nearly 91 per cent of individual traders incurred net losses in the Equity Derivatives Segment (EDS) at the aggregate level in the recently concluded financial year 2024-25. A similar trend was observed in 2023-24 too.
This SEBI analysis came after certain media reports claimed that investor losses had started to reduce after the markets regulator had, on October 1, 2024, introduced some measures to strengthen the equity index derivatives framework.
Markets regulator SEBI analysed the trading activity of all investors and individual investors for the period December 2024 to May 2025, to present the factual impact of measures to strengthen the equity index derivatives framework introduced on October 1, 2024.
The SEBI said index options turnover, year on year, is down by 9 per cent (in premium terms) and 29 per cent (in notional terms). However, compared to the level two years ago, index options volume is up by 14 per cent (in premium terms) and 42 per cent (in notional terms).
Turnover of individuals in premium terms in EDS is down by 11 per cent year on year and up by 36 per cent over the similar period two years ago. The number of unique individual investors trading in EDS is down by 20 per cent compared to the previous year and up by 24 per cent from two years ago.
The financial year-wise trend for a six-year period (2019-20 – 2024-25), along with analysis of profit and loss of individual traders in EDS is covered in the full study carried out by SEBI.
