FIA has responded to the SEBI consultation paper on the Final Settlement Day for Equity Derivatives. FIA acknowledges and supports SEBI’s stated objectives of enhancing market stability, improving predictability, and promoting orderly market functioning through a more structured approach to contract expiries.
FIA agrees with the proposal to limit expiries on each exchange to either Tuesday or Thursday, noting the benefits of reduced concentration risk and operational efficiency, while recommending flexibility for new entrants. On weekly benchmark index options, FIA acknowledges investor protection concerns and also suggests calibrated access controls and investor education to achieve these aims. While supporting the alignment of monthly contract expiries, FIA encourages retaining some flexibility around tenors to accommodate diverse trading strategies and evolving market needs. Finally, FIA strongly supports SEBI’s proposal to require prior regulatory approval for any changes to expiry or settlement days.
