BSE Ltd, Angel One shares lost more than 6% today as SEBI considers extending the expiry tenure of equity derivatives

Shares of capital-market-linked firms BSE and Angel One slipped on Thursday after markets regulator Sebi hinted at changes that could extend the expiry term of equity derivatives.

BSE Ltd share closed the day today, down by 7.65%. Angel one closed the day, down by 6.42%.

The sell-off came after Sebi Chairman Tuhin Kanta Pandey, speaking at the FICCI Annual Capital Market Conference in Mumbai, said the regulator is examining whether the tenure of equity derivatives contracts should be extended. He added that a consultation paper on the subject will be released shortly.

“The need of the hour is to look at increasing the tenure of equity derivatives,” Pandey remarked, signalling that changes could be on the horizon for a segment that has seen a massive surge in retail activity.

Over the past few years, Indian markets have witnessed a sharp rise in derivatives trading volumes, much of it driven by retail participation. Concerned by the growing speculative trend, Sebi has already taken steps such as capping the number of contract expiries and raising lot sizes to make trades more expensive.

While India now accounts for nearly 60% of global equity derivatives volumes, the gains have not been evenly spread. A Sebi study showed that retail traders lost about ₹52,400 crore in FY24, even as proprietary traders made profits worth ₹33,000 crore and foreign investors earned ₹28,000 crore.

To curb risks, Sebi has already tightened exposure limits by capping end-of-day options positions at ₹1,500 crore. According to people familiar with the matter, the regulator is also weighing fresh restrictions on intraday index derivatives trading to contain systemic risks.

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