BSE, Angel One shares see a sharp fall after SEBI Chairman remarks on equity derivatives tenure

Shares of the Bombay Stock Exchange (BSE) fell as much as 5% on Thursday, August 21, after Tuhin Kanta Pandey, Chairman of market regulator Securities and Exchange Board of India (SEBI) made new statements with regards to the tenure of equity derivatives.

Speaking at the FICCI Annual Capital Market Conference, Pandey said that there is a need to increase the tenure of equity derivatives.

There will be a consultation paper that will be issued with regards to increasing the tenure of equity derivatives, the SEBI Chairperson said.

The SEBI Chairperson added that the regulator is looking for ways to improve the tenure and maturity of equity derivatives contracts as well as looking to deepen volumes in the cash market.

In an interaction with CNBC-TV18 on August 12, BSE MD & CEO Sundararaman Ramamurthy had said that regulatory policy in Inia is a continuously evolving process and that they would wait for the regulator to formulate a view on reports related to the removal of the weekly expiry.

He also mentioned that based on the data available, he cannot conclude that options volumes have peaked in India and that BSE is currently focussed on diversification of revenue streams, instead of improving margins.

Shares of BSE are trading 5.5% lower at ₹2,381, while those of Angel One are down 4.3% at ₹2,603.

This is a developing story.