According to media reports, the paper could be released within a month and will propose a transition to monthly expiries with a defined glide path. SEBI is also considering introducing a same-day expiry across exchanges, following the recent divergence where NSE shifted its weekly expiry to Tuesdays and BSE to Thursdays.
SEBI Chairman Tuhin Kanta Pandey had first indicated on August 21 that the regulator was exploring longer-tenor derivative products. Media reports suggest that the matter will be taken up at SEBI’s board meeting scheduled for September 12, with consultations with exchanges likely to begin as early as next week.
The consultation paper is also expected to propose measures to curb retail participation in the F&O segment. Additionally, the regulator may recommend steps to boost volumes in the cash market, offering an alternative to highly leveraged derivatives trading.
The move comes amid rising concerns about surging retail activity in derivatives, which has often drawn regulatory attention over the risks posed to small investors.
BSE is Asia’s oldest exchange and the world's largest exchange in terms of the number of listed companies. The exchange provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, stock lending and borrowing.
BSE has reported 104% increase in consolidated net profit to Rs 538 crore on a 59% rise in revenue from operations to Rs 958 crore in Q1 FY26 as compared with Q1 FY25.