BSE, AngelOne & capital market stocks fall on SEBI’s Proposal to Extend Derivatives Tenure

BSE Ltd’s stock fell nearly 7% intraday on August 21, erasing over ₹6,000 crore in market value, after SEBI Chairman Tuhin Kanta Pandey announced plans to extend the maturity of equity derivatives contracts. Speaking at the FICCI Capital Market Conference, Pandey said a consultation paper will soon be released to gather industry feedback, aiming to balance derivatives and cash market activity and deepen the spot market. The proposal triggered sharp selloffs in exchange and brokerage stocks. BSE’s share price dropped close to 6%, while Angel One fell nearly 6% and Motilal Oswal Financial Services declined 2%. Investors fear that longer contract tenures could reduce daily trading volumes and, consequently, lower brokerage revenues and exchange fees. The market’s reaction underscores concerns over regulatory changes impacting revenue models, even as SEBI seeks to build a more robust and balanced capital market ecosystem.