India's top brokers meet Sebi chief; express concerns over closure of F&O weekly expiry; here's what Pandey says

Sebi chief Tuhin Kanta Pandey on Friday (July 18, 2025) sought a model that protects investors and does not cause market disruption as he met India's top brokers. 

During the meeting, brokers expressed concerns over the closure of futures & options (F&O) weekly expiry.

Brokers were concerned over a fall in F&O volume.

The Sebi chief, in his response, however, sought suggestions from the brokers for a model that protects investors and does not cause market disruption.

Main demands of brokers

Brokers demanded from the Sebi chief that the weekly expiry of index options should not be discontinued.

They suggested that F&O investor eligibility criteria should be fixed.

They said that if Sebi wants to stop retail participation, a framework is necessary, and not a complete ban.

What should the regulatory framework be like?

Brokers suggested a number of ways how Sebi can set a regulatory framework.

• Only experienced investors should be allowed in weekly expiry

• Risk profiling and the knowledge test should be mandatory

• UCC data should be used to determine the eligibility criterion

• There should be separate rules for high-frequency traders

• Auto warning or restriction after loss threshold

The other suggestion was that the exchange should be able to reverse trades so that losses like Jane Street are not repeated. 

They said that exchanges should not report only red flags to Sebi.

Other demands of the broker

Among their other demands from Sebi, brokers said that Bank Nifty should be allowed to have weekly contracts.

They said that the index should be broadened so that manipulation is reduced.

They also said that transparent changes should be made in ‘Fit & Proper’ rules.

Brokers said that heavy penalties should not be imposed for small mistakes.

They said that trading costs should be reduced so that the market can become like Nasdaq.

They demanded that an action plan should also be made on cyber security.

A 2 per cent ELM should be removed on expiry day, brokers demanded from Sebi.

They said that the calendar spread benefit should be available again for protection from losses.