Market regulator SEBI plans to extend equity derivatives tenure

Business Industry

Posted by AI on 2025-08-21 09:26:34 | Last Updated by AI on 2025-08-21 11:45:46

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With an aim to curb losses for traders and investors, SEBI is planning to extend the tenure of equity derivatives contracts. This conceptual move arises from the current open position limits and the planned increase in lot sizes.

Currently, traders and investors have open positions in equity derivatives, such as options and futures, which result in settlements after a month. The Securities and Exchange Board of India (SEBI) is planning to extend the maturity of such contracts to three months, giving traders and investors more time to manage their positions and mitigate losses. This extended duration will allow market participants to tailor their risk management strategies more effectively.

The SEBI has emphasized that the concept is still in its early stages, and any further modifications or implementations will be announced shortly. The extension of the tenure is intended to provide traders and investors with greater flexibility and risk management capabilities, but it will interesting to see how this longer-term exposure impacts the equity market as a whole.

This development underscores SEBI's commitment to fostering a robust and secure environment for all participants in the country's equity derivatives market.

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