The Securities and Exchange Board of India (SEBI) held its much-anticipated board meeting on Monday, September 30, where it announced a range of changes to regulations governing the primary and secondary markets, mutual funds, and foreign portfolio investors (FPIs). However, the board remained tight-lipped on the much-speculated F&O (futures and options) framework.

Market participants had widely expected SEBI to unveil a new F&O framework during the meeting, following months of discussions. The anticipated changes are seen as crucial to curbing the surge in speculative trading, which has intensified due to the introduction of daily expiries for index-derivative contracts.

In a consultation paper released on July 30, SEBI proposed reforms aimed at tightening the F&O market. These included limiting the number of weekly derivative expiries per stock exchange, raising the minimum contract value from ₹15-20 lakh initially, with plans to eventually increase it to ₹20-30 lakh, to discourage retail participation, and streamlining strike prices. With the final deadline for public comments on these proposals set for August 20, there was widespread speculation that Monday’s meeting would mark a decisive step forward.

The proposed reforms are expected to address concerns raised by both SEBI chairperson Madhabi Puri Buch and Finance Minister Nirmala Sitharaman over excessive risk-taking behaviour in the F&O segment. However, despite high expectations, SEBI refrained from making any announcements regarding the framework.

While the board introduced several key regulatory changes, the absence of a decision on the F&O framework leaves stakeholders waiting for further clarity on how India’s trading landscape will evolve.