Archive · 7 Nov 2025
NSE CEO: Weekly Options Ban to Have Limited Financial Impact
The boss of the National Stock Exchange (NSE) said that even if the government stops weekly stock option trading, it won't hurt their business too much.
He explained that most of the money they make doesn't just come from the last day of the week when options expire.
Trading happens on other days too.
While options trading makes a lot of money for the exchange, NSE's trading is spread out, unlike some other exchanges.
The government is looking at stopping weekly options because many small investors have lost a lot of money trading them.
They have already made some changes to make trading less risky.
The NSE boss thinks they will be okay even if this change happens.
NSE CEO Ashishkumar Chauhan believes a potential ban on weekly options by Sebi will have a limited financial impact on the exchange.
He stated that NSE's trading volumes are diversified and not solely dependent on expiry day activity.
Equity options contribute significantly to NSE's revenue, accounting for 75% of its transaction charges in Q2 FY26.
Expiry day volumes represent a smaller portion of NSE's total index options volume (28.5% in October) compared to BSE (51%).
Sebi is considering the ban as part of efforts to curb retail investor losses in index options, which totaled over ₹1 trillion in FY25.
- Who
- NSE CEO Ashishkumar Chauhan, Securities and Exchange Board of India (Sebi)
- What
- NSE's CEO stated that the discontinuation of weekly options by Sebi will not significantly impact the exchange's financials, despite options being a major revenue source. NSE's reliance on expiry day volumes is lower than its rival BSE.
- When
- Thursday (announcement during investor call after Q2 earnings), September (NSE shifted weekly options expiry), November (first wave of Sebi reforms), July (second wave of Sebi reforms)
- Where
- India (NSE, BSE)
- Why
- Sebi is considering reforms to curb retail frenzy in index options, which have led to significant investor losses. NSE believes its business model is resilient to such a change due to diversified trading volumes.
NSE's Position
Market Concerns and Sebi's Actions
Financial Impact of Discontinuation
NSE's Position
NSE CEO Ashishkumar Chauhan stated that the discontinuation of weekly options by Sebi would not significantly impact NSE's financials, as their volumes are spread across most days and not solely dependent on expiry day trading.
Market Concerns and Sebi's Actions
Equity options are a major revenue generator for stock exchanges. In Q2 FY26, equity options accounted for 75% (₹2,083 crore) of NSE's total standalone transaction charges.
Volume Contribution of Expiry Days
NSE's Position
NSE's data shows that expiry day volumes contributed only 28.5% of total index options volumes in October and 32% in September, supporting the claim that discontinuing weekly expiries would not have a significant business impact.
Market Concerns and Sebi's Actions
For BSE, expiry day volumes accounted for a higher 51% of total index options volumes in October and 42% in September, indicating a greater reliance on expiry day trading compared to NSE.
Sebi's Regulatory Stance
NSE's Position
Sebi is considering data from recent reforms aimed at curbing retail frenzy in index options, which have caused substantial losses to individual traders.
Market Concerns and Sebi's Actions
Sebi chief Tuhin Kanta Pandey mentioned a calibrated approach to contain investor exuberance without stifling the market, and the regulator will consider the impact of changes before deciding on weekly contracts.
- NSE Q2 FY26 Net Profit
- ₹2,098 crore (reported); ₹3,396 crore (excluding one-time settlement fee)
- NSE Q2 FY26 Total Income
- ₹4,160 crore
- Equity Options Revenue (Q2 FY26)
- ₹2,083 crore (75% of total transaction charges)
- Retail Investor Losses in FY25
- ₹1.05 trillion
- NSE October Index Options Expiry Day Volume Share
- 28.5%
- BSE October Index Options Expiry Day Volume Share
- 51%
- NSE Weekly Nifty Options Expiry Day Change
- Shifted to Tuesday from Thursday (since September)
Sources
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