NSE IPO will see light of the day: Sebi chief

Mumbai: Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Friday said that the market regulator will implement any changes to the futures and options (F&O) segment in a phased and calibrated manner, emphasising that a halt to weekly expiries is not under consideration.

“We can’t just shut down weekly F&O expiries. Many market participants are actively using it,” Pandey said while speaking at an event in Mumbai.

Responding to much-delayed NSE IPO, Pandey assured that the NSE share sale will eventually see light of the day.

Speaking at an event organised by the Business Standard, Pandey said a panel, formed after the exit of his predecessor Madhabi Puri Buch to suggest a mechanism for the capital markets regulator to disclose conflict of interest, is likely to submit its suggestions by November 10. Replying to a specific question on the NSE IPO, Pandey said,

In order to evaluate the wider market impact of F&O trading patterns, the Sebi chief stated that the regulator is now gathering and analysing a large amount of data on these patterns, and the same will be released in the form of a consultation before moving forward.

Additionally, he noted that Sebi has already implemented some measures in the derivatives sector, some of which have not yet gone into effect.

Earlier, some reports suggested that the market regulator wants to eliminate weekly F&O expiries in order to enhance cash market trading and lessen market speculation. Pandey’s remarks coincide with calls for stricter regulation of the derivatives market due to growing concerns about the increasing speculative activity and retail participation in weekly options.

Earlier, Sebi extended the deadline for Qualified Stock Brokers (QSBs) to implement systems and processes required for the optional T+0 rolling settlement in the equity cash market.