Angel One shares fell nearly 5% on Monday, August 31, following reports that SEBI is considering removing weekly F&O expiries to curb retail losses. The stock was trading at ₹280.50 around 2:02 pm, down 4.59% or ₹13.50 from its previous close of ₹294. The decline came as investors assessed the potential impact of fewer weekly expiry contracts on derivatives turnover. Angel One opened at ₹292.65 and touched an intraday high of ₹293.75 before declining through the session, with the stock falling as low as ₹278.25. Volume stood at around 97.6 lakh shares by approximately 2:02 pm, with the stock trading only around ₹2.25 above its intraday low at the time of the snapshot.
Market participants have submitted a proposal to the Securities and Exchange Board of India (SEBI) to remove weekly expiry contracts in the equity derivatives market. According to reports from NDTV Profit, the suggestion aims to reduce excessive speculative activity around weekly options, which have become the most traded segment of the Indian derivatives market. Proponents argue that curbing weekly expiries could help redirect investor money toward the cash market while also freeing up capital currently tied up in options-related margin requirements. The proposal would not necessarily eliminate derivatives trading, as activity could migrate towards monthly contracts, longer dated options or other market segments.
The proposal comes against the backdrop of mounting concerns over retail investor losses in derivatives. A recent SEBI study revealed that individual traders incurred aggregate losses of ₹91,685 crore in the F&O segment during FY26, as reported by NDTV Profit. The Finance Ministry's remarks in parliament indicate that SEBI measures have reduced losses in F&O retail by ₹18,000 crore, but losses still stand at over ₹90,000 crore, according to the SEBI study. The renewed debate over market structure changes is aimed at discouraging short-term speculation and addressing persistent retail losses in the derivatives segment.
Another factor behind the discussion is the experience with the recently introduced Closing Auction Session (CAS). Market participants have pointed to sharp price swings and thin liquidity during the mechanism's initial weeks, arguing that concentrated trading activity around weekly expiry days may be amplifying volatility in certain segments of the market, according to NDTV Profit. The proposal represents a significant structural change under consideration as regulators and exchanges continue to grapple with rising retail losses in futures and options trading.
SEBI Chairman Tuhin Kanta Pandey stated last week that CAS is here to stay and that no significant changes are currently planned to the mechanism, as reported by NDTV Profit. The regulator did not respond to a request for comment regarding the proposal to remove weekly expiry contracts. SEBI has not announced a final decision to scrap weekly expiry contracts, with no announced implementation date, final structure or confirmed estimate of how much trading activity could move away from weekly contracts. The actual effect on Angel One would also depend on whether traders shift towards monthly derivatives, other contracts or the cash market.
