SEBI will not spring surprises on F&O contract changes, says Chairman Tuhin Kanta Pandey

New Delhi, Aug Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday said that any decision regarding the extension of Futures and Options (F&O) contracts, including changes to the weekly expiry system, will be communicated transparently to the market, without any sudden announcements.

Addressing questions from the media, Pandey stated that they are constantly monitoring developments in the derivatives segment.

Some corrective steps have already been implemented, and relevant data has been shared.

"If any further decisions are taken, there will be full transparency - we will not take the market by surprise," he said.

On the matter of investor protection in the derivatives market, he emphasised that the SEBI remains vigilant and is focused on ensuring market integrity.

Responding to queries about reported irregularities at IndusInd Bank, the SEBI chief acknowledged the challenges of early detection.

It is not possible to know everything in advance, but we do receive financial data regularly and conduct meetings. Going forward, we need to develop systems that can help identify irregularities through better data analysis, he said.

Asked about the ongoing Jane Street case and whether the SEBI has shared information with the Income Tax Department, Pandey clarified that information is routinely exchanged between regulatory and enforcement agencies.

Each agency has its mandate, and when information is received, it is shared appropriately to ensure coordinated action, he noted.

Earlier, in July, Pandey had remarked on the Jane Street matter that there is no need for new regulations, but rather stronger enforcement and surveillance.

Manipulative behaviour can manifest in different forms. Our PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations prohibit such conduct, and SEBI has the authority to investigate and act against any violations, he had said.

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