MC Exclusive: Expiry Day Volatility – SEBI’s Ananth Narayan Says Watching if More Steps Need to Be Taken
In an exclusive interview with Moneycontrol, Ananth Narayan, member of the Securities and Exchange Board of India (SEBI), spoke candidly about the ongoing market volatility observed on expiry days. He acknowledged the increased fluctuations that often accompany expiry day in the derivatives market and highlighted the regulator's vigilance over such events.
"Expiry days have always seen heightened activity, but the current market conditions are being closely monitored," Narayan remarked. "We are watching closely and assessing whether additional steps are needed to ensure market stability and investor protection."
The expiry of derivatives contracts, particularly index options and futures, often leads to sharp movements in the market due to a concentrated rush in unwinding positions. SEBI has been proactive in introducing measures to curb excessive speculation and maintain orderly market functioning. However, Narayan emphasized that the regulator’s focus is to maintain balance, ensuring that interventions are measured and not overly disruptive to natural market behavior.
With several market participants expressing concerns over recent spikes in volatility, Narayan assured that SEBI is considering whether more regulatory actions are warranted to prevent extreme movements, particularly during the critical expiry phase.
He also reiterated that SEBI remains committed to its role in maintaining fair and transparent markets, with constant engagement with various stakeholders, including exchanges, brokers, and institutional investors.
As the market continues to navigate the complexities of expiry day trading, SEBI’s active monitoring underscores its commitment to maintaining market stability and investor confidence. Further updates are expected as SEBI continues to assess the situation.
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