Arun Kejriwal On SEBI's Derivatives Reforms: A Game Changer For Investors

Under SEBI's new rules, effective from November 20, 2024, only two indices—one from BSE and one from NSE—will have weekly expiry contracts. All other indices will shift to monthly expiries to reduce hyperactivity around derivatives on expiry dates. Currently, there’s an options contract expiring daily on Dalal Street. The National Stock Exchange (NSE) has confirmed that weekly derivative contracts for Nifty Bank, Nifty Midcap, and Nifty Financial Services will be discontinued, and transitioned into monthly contracts in compliance with SEBI's directive. The Nifty 50 will be the only index retaining weekly expiries. The final weekly expiries for Nifty Bank, Midcap, and Financial Services are on November 13, 18, and 19, 2024, respectively. Market Expert Arun Kejriwal expressed his approval of the changes, referencing the 1969 film If It's Tuesday, This Must Be Belgium. He likened the previous daily expiries to the film’s title, explaining how investors would associate certain days with specific indices. Kejriwal explained that the old system drew small investors into a cycle where larger players in the derivatives market would capitalize on them. He believes that SEBI's reforms, including increasing lot sizes, will help curb the rush for quick profits in derivatives trading.