PTI New Delhi

Sebi on Monday said expiries of all equity derivatives contracts across exchanges will be uniformly limited to Tuesdays or Thursdays.  This would help optimise the spacing between expiries and avoid designating, either the first or last day of the week as the expiry day.

In its circular, Sebi said exchanges will now seek its approval before launching or modifying any contract expiry or settlement day. "In the multi-exchange framework, spacing out of expiry days through the week reduces concentration risk and provides an opportunity for stock exchanges to offer product differentiation to market participants.

"At the same time, too many expiry days has the potential to revive expiry day hyperactivity which could jeopardise investor protection and market stability," Sebi said. Accordingly, Sebi said expiries of all equity derivatives contracts of an exchange will be uniformly limited to either Tuesday or Thursday. Further, every exchange will continue to be allowed one weekly benchmark index options contract on their chosen day (Tuesday or Thursday). 

Also, benchmark index options contracts, all other equity derivatives contracts such as all benchmark index futures contracts, non-benchmark index futures/options contracts, and all single stock futures/options contracts will be offered with a minimum tenor of 1 month, and the expiry will be in the last week of every month on their chosen day (that is last Tuesday or last Thursday of the month). 

To operationalise the framework, Sebi asked stock exchanges to submit their proposal to it by June 15. Appointment process of senior officials at MIIs  Sebi on Monday came out with a process to appoint specific key officials of stock exchanges and other market institutions.

These measures are aimed at ensuring that MIIs (market infrastructure institutions) are staffed with qualified, independent key management personnel (KMPs) and directors while safeguarding market integrity through effective cooling-off policies. “To strengthen the governance framework of stock exchanges, clearing corporations and depositories (collectively referred to as MIIs), it is required that the KMPs of MIIs in the crucial areas of operations, such as compliance, risk management, technology and information security are of appropriate stature and independence," Sebi said in its circular.