To look at the ways to improve the SEBI F&O market: Officer

MUMBAI: A senior SEBI official on Thursday raised concerns about the huge quantity of short -term derivatives contracts and said that the regulator would take new steps to improve the quality of future and options.

“Unlike long -term derivatives, short -term derivative products such as expiry day trading in index options can withdraw from capital composition,” Sebi Anant Narayan all -time member at the CII event in Kolkata. “Even today, very short -term derivatives dominate our equity derivative volumes.

Research suggests that expiry day option trading increases market volatility and can lead to noise trade, which weakens confidence in potential price formation. “

SEBI research shows that 91% of individual traders traded a net loss in F&O in FY 25, in which LAKH exceeded the overall loss of Rs 1 lakh crore.

“As many experts have pointed out, our Indian derivative market ecosystem is fairly unique, in the days of end, comparative turnover in index options is turnover in the underlying cash market or more turnover-an imbalance, which is clearly unwanted. Gives, whose income depends very much on these short -term derivative volumes.