Securities and Exchange Board of India whole-time member Prashant Pandey said the regulator is developing longer-term futures and options contracts to complement existing near-month instruments dominated by high-frequency traders. The proposal aims to deepen hedging tools for institutional investors managing balance sheet risk over multi-quarter horizons.
Market participants requested clarity on contract design, margin frameworks and settlement mechanisms before committing capital. Brokers worry about liquidity fragmentation if too many series launch simultaneously without market maker incentives.
Longer-dated derivatives could help exporters and importers lock inputs beyond 90-day windows common today, according to economists briefing exchanges. Retail participation caps may remain stricter than for cash equities to limit speculative blowups.
SEBI timelines for consultation papers have not been announced, but officials indicated alignment with broader reforms encouraging domestic capital formation amid global volatility.
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Sources:
https://epaper.financialexpress.com/4163313/Hyderabad/June-13-2026