Zerodha founder and CEO Nithin Kamath said on Thursday that there has been no discussion between the brokerage and market regulator SEBI regarding the weekly expiry issue.
“There hasn’t been any consultation with brokers to the best of my knowledge,” he wrote on microblogging site X (formerly Twitter).
Kamath asserted that SEBI “always consults” industry players before implementing major regulatory changes.
His remarks put to rest speculation about whether the regulator had already kicked off the consultation process for the removal of weekly options expiry following some media reports, and come at a time when SEBI has already curtailed weekly expiries for most indices and rejigged expiry days.
Earlier this month, SEBI Chairman Tuhin Kanta Pandey said the regulator would announce about a consultation paper in this regard as soon as it materialises. “We will consider weekly expiry… We had already said that. But consideration takes time… If we keep telling you this every day, when will we actually do the work? Because the way you report it, it feels like it’s coming tomorrow itself,” he said on September 12. Read more
How SEBI aims to change derivative expiries
The regulator has limited weekly expiry contracts to just one benchmark per exchange since late last year.
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Its plans to completely phase out weekly options expiry remains under discussion with no formal consultation paper or decision issued yet.
From September 1, NSE shifted its weekly expiry day from Thursday to Tuesday, while BSE moved to Thursday — a move aimed at improved trading strategies and liquidity management.
The rationale behind curbing weekly expiries is to protect retail investors from high volatility and speculative trading losses prevalent in shorter options tenors like weekly.
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