SEBI wants more derivatives with longer duration: Pandey

CHENNAI: The intention of Securities and Exchange Board of India (SEBI) is to have more derivaties which are of longer term, said the chairman of the markets regulator, Tuhin Kanta Pandey while responding to a question on SEBI's plans to increase the tenure and maturity of equity derivatives contracts. Pandey was in Chennai to address a high-level interactive session organised by the Confederation of Indian Industry (CII). Addressing reporters, Pandey said, “It is not we are going shut down some of the derivatives that are operating. The markets need to develop newer derivatives which are of longer term. For example, electricity futures which was launched recently. We want derivatives which have a duration of quarter, six-month, or a year.” On media reports about LIC approving RIL and Adani Group shareholders’ resolution unanimously since April 1, 2022, Pandey replied that the SEBI cannot comment on individual company’s investment decision. Presenting the latest market data, Pandey said that equity capital raised between April and October FY26 has already crossed ₹2.5 lakh crore while corporate bond issuances have touched nearly ₹5.5 lakh crore during the same period. With 186 IPOs garnering around ₹700 billion, India continues to rank first globally in the number of IPOs and third in terms of value raised. Outstanding corporate bonds now stand at nearly ₹55 lakh crore, approaching 60% of bank credit, signalling a healthy diversification of funding sources for Indian enterprises. He said, “We have received several suggestions for listing regulation. These suggestions will be put forward to the committee which looks Listing Obligations and Disclosure Requirements (LODR). Because it is important changes, it will take some time to get clarity on the rules. The rules will also have SME related listing challenges.” Divulging details about the meeting with members of the CII, Pandey said, “In general, we got a sense that the industry wants further simplication of regulatory rules in terms of ease of doing businesses, and some of ideas raised in the meeting have been compiled and sent it to SEBI.” He further added, “Another important concern came up during the meeting was how to bring more and more MSMEs come to the capital markets. The challenge will be to create more enabling environment for MSMEs to come to the capital market. CII’s Centre for MSME Excellence to prepare MSMEs will do handholding and providing them training the dos and don’ts of capital markets. Southern companies have a lot of potential which needs to be explored.”