Business

Sebi Proposes Unified Expiry Days for Stock F&O Contracts to Curb Speculative Trading

Sebi's New Proposal for F&O Market

Markets regulator Sebi has introduced a groundbreaking proposal aiming to standardize the expiry days for equity derivatives contracts across all exchanges. The suggestion is to limit expiry days to either Tuesday or Thursday, a move designed to bring predictability and reduce speculative trading in the futures & options (F&O) segment.

Sebi for stock F&O expiry on Tuesday or Thursday

Impact on Market Players

Market experts highlight that having separate expiry days for different exchanges could allow investors to shift positions, undermining the goal of stricter regulations. This proposal seeks to eliminate such loopholes, ensuring a more stable and less speculative market environment.

Benefits of the Proposal

The standardization of expiry days is expected to not only streamline operations but also make the market more accessible and predictable for investors, fostering a healthier trading ecosystem.