Angel One, BSE Stocks Fall On Reports Of SEBI Mulling End To Weekly F&O Contracts

Shares of capital market companies declined on reports of the Securities and Exchange Board of India (SEBI) floating a consultation paper on ending weekly F&O contracts within a month.

Angel One, BSE fell over 4.5%, Nuvama fell over 2% and 360 One shares declined over 1%, among weakness in the sector. 

What’s Driving The Fall?

According to a report by CNBC-TV18, the market regulator is considering a shift to monthly expiries with a defined glide path and may also examine same-day expiry across exchanges. The board is expected to be briefed on the proposal for longer derivative tenures on September 12. Consultations with stock exchanges may begin as early as next week.

The development comes after SEBI Chairman Tuhin Kanta Pandey highlighted the need to extend the tenure of equity derivatives at a conference last month.

He noted that while derivatives trading has surged in recent years, primarily due to retail participation, SEBI has already taken measures such as limiting contract expiries and increasing lot sizes to discourage excessive speculative activity.

Pandey added that India’s cash market volumes have doubled in three years and said SEBI will soon release a consultation paper on reforms to make derivatives more efficient and transparent.

F&O Reforms: The Concerns

Derivatives trading has been under scrutiny in recent months, with SEBI already capping weekly contracts to one per exchange and fixing expiry days.

Market participants worry that moving to longer-tenure contracts could dampen trading volumes for exchanges like BSE and impact broking firms that benefit from active derivatives trading, the report added.

Capital Market Stocks Under Pressure

Angel One slumped 4.8% to ₹2,224.6 in afternoon trade, while BSE declined 4.5% to ₹2,165.3.

Retail sentiment for both stocks was ‘bearish’ on Stocktwits. It was ‘neutral’ a day earlier for Angel One, while sentiment shifted from ‘neutral’ a week ago for BSE. Angel One was among the top 5 trending stocks on the platform.

Year-to-date, Angel One shares have slid 24%, while BSE has seen a 22% growth.

Both Central Depository Services (India) and National Securities Depository were down 1%.

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