Notably, weekly options were introduced to enhance liquidity and help traders hedge short-term market risks. (Photo source: Neha Aravind/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed
The Securities and Exchange Board of India is deliberating a plan to phase out weekly options, as the capital market regulator grows increasingly concerned that these contracts are no longer serving their intended purpose of hedging and have instead become tools for short-term speculative trading.
Sources tell NDTV Profit that the regulator is actively working on a proposal to gradually discontinue weekly options in a “calibrated” manner. A sunset clause is likely to be introduced to allow for the smooth settlement of existing weekly contracts once the regulator decides to impl