Sebi Chief Dismisses Speculations Regarding Curbing Of Weekly Options Expiry Cycle

Securities Exchange Board of India (Sebi) Chief, Tuhin Kanta Pandey dismissed speculations regarding reports which claimed that the market regulator is seeking to curb the weekly options expiry circle. Pandey spoke at the sidelines of the Association of Portfolio Managers in India (APMI), Annual Conclave and called the reports false and speculative in nature. However, Pandey emphasised the need for reforms in the derivatives space. He added that the nature of the reforms will be communicated to market participants after due consultation with stakeholders.

"We need some reforms. But what will be the nature of those reforms and how will it be treated - as per our practice we always discuss it with the markets. Whenever we envisage such concrete measures, we will certainly inform the market and come out in the open for consultations as in the past," Pandey said.

Further Pandey also said that as of now no communication has taken place between the market watchdog and the Finance Ministry regarding the matter.

Notably, it was speculated that the market regulator was in talks with the Finance Ministry to change the weekly options expiry cycle. The speculations included a possible discontinuation of the weekly options expiry in lieu of either a bi-monthly expiry cycle or a monthly expiry cycle. A shift in the expiry cycle is likely to shift retail preferences from speculating on income to making more informed investment decisions. Multiple industry stakeholders have highlighted the need for reforms following Sebi's probe into Jane Street's market manipulation case. Following the reports, capital market stocks came under pressure, with the Nifty Capital Market index closed lower by 1.14 per cent at 4,364.6 on August 5

The market regulator also talked about the growth of the Portfolio Management Services (PMS) industry at the event. He mentioned that the client base of the industry has grown at a Compounded Annual Growth Rate (CAGR) of 12 per cent with discretionary clients increasing by 13 per cent per annum and now constituting as much as 96 per cent of all clients.

He added that this growth has come amid a surge in the Gross Domestic Product which was around $3.9 trillion rising almost seven-fold since 1993, the year in which PMS was brought under Sebi's regulatory ambit. The Sebi chief also stated that the number of registered Portfolio Managers has also risen from 361 at the end of FY 2020-21 to 479 as of June 30, 2025.

However, the market regulator added that along with maintaining the growth, PMS industry stakeholders also need to maintain trust and professional conduct. Pandey urged industry stakeholders to ensure that their clients understand the risk-return trade-offs of their investment.

"You must ensure that clients understand the risk-return trade-offs, the bespoke nature of their mandate, and the advantage of directly owning underlying securities - benefits that pooled products may not match. Educating each client on their unique risk appetite is the first step in building a truly diversified portfolio," Pandey said at the event.

Pandey also urged the APMI and other industry stakeholders to curb the spread of misleading claims as they might undermine trust.

"APMI and the industry must curb misleading claims being made by a few registered Portfolio Managers. Such exaggerated performance claims undermine trust and could stall the growth of this industry," Pandey said.