Sebi Chairman clarified that there will be no ban on weekly futures and options (F&O) contracts in India. The regulator emphasized ongoing efforts to enhance market liquidity and safeguard investor interests.
Sebi chairman confirms no ban on weekly F&O contracts, affirming support for a transparent and liquid derivatives market in India.
Mumbai, November 1, 2025 – The Securities and Exchange Board of India (Sebi) has confirmed that it will not impose a ban on weekly futures and options (F&O) contracts, addressing recent market speculation. In a statement issued today, Sebi Chairman emphasized the regulator’s commitment to fostering a transparent and robust derivatives market while protecting investors.
Weekly F&O contracts, popular among traders for their short-term exposure and liquidity benefits, have been under regulatory review due to concerns related to market volatility and risk management. However, Sebi’s current stance reflects confidence in the existing risk containment frameworks and trading mechanisms.
“There is no plan to ban weekly F&O contracts,” the Sebi Chairman stated during a press briefing. “Our focus remains on enhancing market integrity, improving infrastructure, and ensuring that adequate safeguards are in place for investor protection.”
The move reassures market participants who rely on weekly contracts for tactical asset management and hedging strategies. Weekly contracts provide more frequent expiration cycles compared to traditional monthly contracts, contributing to greater flexibility in derivatives trading.
Sebi’s clarification follows discussions with exchanges, industry stakeholders, and risk management committees. The regulator highlighted that it continues to monitor market dynamics closely and is prepared to take appropriate measures should systemic risks emerge.
Market experts welcomed the announcement, noting that maintaining weekly F&O contracts supports liquidity and market depth. “Weekly options are vital for market participants seeking short-duration trades,” said a senior analyst at a leading brokerage firm. “Sebi’s decision helps maintain an active derivatives ecosystem without compromising investor safety.”
In recent years, the Indian derivatives segment has witnessed significant growth, with F&O trading volumes substantially increasing. The availability of weekly contracts has been a contributing factor, attracting diverse participants including retail investors, institutional traders, and hedgers.
Sebi also reiterated its commitment to investor education and continuous improvement of surveillance mechanisms. Enhanced disclosure norms and dynamic margining systems are among the tools employed to manage risks associated with derivatives trading.
As derivatives markets evolve, Sebi’s balanced regulatory approach aims to sustain market stability while encouraging innovation. The confirmation that weekly F&O contracts will remain available provides clarity for all stakeholders ahead of the upcoming trading cycles.
For now, market participants can continue to trade weekly futures and options contracts under the existing regulatory framework, benefiting from the flexibility and risk management options these instruments offer.
In summary, Sebi’s announcement dispels rumors about a potential ban, reaffirming the regulator’s role in nurturing a vibrant and secure derivatives market environment in India.
