Need to raise tenure of derivatives: Sebi chief

Move can have major impact on equity markets; Sebi says will issue consultation paper before taking any decision

- BENN KOCHUVEEDAN @ Mumbai

SEBI chairman Tuhin Kanta Pandey has said there is a need for an increase in tenure and maturity of equity derivatives as the volume continue to remain high even after many measures introduced since last November.

The statement led to sharp decline in key listed industry players like bourse BSE, and listed brokerages Motilal Oswal and Angel One on Thursday. Addressing industry lobby Ficci-organised annual capital markets summit here, the regulator was quick to add that currently proposal is only a "thought process" and that the industry would be consulted before taking any decision. "A consultation paper in this regard will be initiated," Pandey added.

"All this will be done in consultation, in what form, how, when. Yes, there will be a consultation paper. I can't tell you when, but that is the thinking process we have," Pandey told reporters. The move can potentially have a significant impact for the equity markets, going forward, and the regulator assured there will be consultations, and Sebi is right now only proposing an idea for deliberation.