Weekly options may go as Sebi begins consultations

Taking a hit Annual profits and losses of individual traders in the equity derivatives segment.

- Ram Sahgal & Neha Joshi

Weekly index options contracts could become a thing of the past. The Securities and Exchange Board of India will issue a consultation paper shortly seeking public views on extending the contract tenures, building on efforts to curb speculative trading in light of huge losses faced by individuals on weekly Nifty and Sensex options, said an official aware of the development.

The proposal, however, will not figure in Sebi's Friday board meeting. The capital market regulator will decide on switching to fortnightly or monthly index options contracts only after receiving feedback from stock exchanges, broker associations, market participants, and the public, the official said.

It will also decide on if the contracts should expire on the same day or different days, as is the case currently, he said.