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SEBI Holds Back on F&O Expiry and Contract Size Adjustments Amid Rising Speculative Trading
September 30, 2024, 10:50 PM IST | By Shivendra Kumar – ETMarkets.com
In a move contrary to market expectations, the Securities and Exchange Board of India (SEBI) has decided not to implement any immediate restrictions on weekly Futures and Options (F&O) expirations or raise the minimum contract sizes. The regulator has been under pressure to take action as speculative trading has been on the rise, causing significant losses for retail investors.
SEBI’s decision comes as a response to the growing volatility in speculative trading, which has reportedly cost retail investors a staggering ₹1.81 lakh crore over the last three years. Despite concerns over these losses, the regulator appears to be treading carefully, opting not to impose stricter controls for now.
This development has sparked mixed reactions among market participants, with some viewing it as an opportunity for traders to continue their current strategies, while others urge caution given the risks associated with high-frequency trading.
As the debate over F&O market reforms continues, it remains to be seen whether SEBI will take further steps in the near future to address concerns over speculative trading and its impact on retail investors. For now, the regulator is holding off on immediate changes, keeping the market dynamics intact.
Stay tuned for further updates on this developing story.
