SEBI Plans to End Weekly F&O Expiries: A Game-Changer for Indian Markets

The Securities and Exchange Board of India (SEBI) is preparing a consultation paper that could bring one of the most impactful reforms in the Indian capital market: phasing out weekly futures & options (F&O) expiries. This step, if rolled out, will reshape trading behavior, curtail speculative frenzy, and push India’s derivatives market back toward a more stable structure based on monthly contracts. This breaking news has been published in popular Capital Market News Portal  CNBC TV18. 

Why SEBI Wants This Reform:

• Reduce speculation & expiry-day volatility.
• Protect retail investors, who lose money in over 90% of F&O trades.
• Prevent market manipulation by powerful foreign institutions and HFT players.
• Ensure risk management takes precedence over speculative gambling.
• Impact on Stakeholders
• Exchanges: BSE may lose its Tuesday-expiry edge; NSE will also see reduced F&O-driven revenue.
• Brokerages: Angel One, IIFL Securities, Motilal Oswal and others could see lower fee income.
• Depositories (CDSL, NSDL): Transaction-linked revenue may moderate.
• Retail traders: Less short-term thrill, but safer investing environment.
• FPIs/FIIs: Harder to manipulate expiry-day swings with big capital inflows.

Which Stocks Will Be Most Affected?

The direct losers will be BSE Ltd., brokerage firms like Angel One, Motilal Oswal, IIFL Securities, JM Financial, Geojit, and depositories like CDSL and NSDL. All of them earn significantly from F&O-driven turnover and fees, which will fall once weekly expiries vanish.

FPIs/FIIs and Manipulation:

Weekly expiries allowed global institutions to deploy thousands of crores overnight and distort expiry-day outcomes. The move will reduce such distortions, leveling the playing field for domestic investors.

Global Precedent:

The U.S. CFTC has repeatedly fined large firms for derivatives manipulation, while SEBI fined Jane Street ₹550 crore for alleged Bank Nifty expiry trades. India’s regulator is drawing lessons from these cases.

Stability & Retail Inflows:

Short-term, markets may face hiccups, but in the long term, mutual funds, SIPs, and growth stocks will attract retail money. This strengthens India’s structural story.

Conclusion:

If implemented well, the move will transform India’s F&O market from a speculative casino into a true hedging platform. You may also like to read another informational articles on Indian Stock Market here.

Disclosure: The author is not a SEBI-registered advisor but has over 15 years of deep knowledge in Indian markets.

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