Will wait for impact of latest F&O rules, new norms only if necessary: SEBI Chairman

Securities and Exhchange Board of India (SEBI) Chairman Tuhin Kanta Pandey is in wait and watch mode. He wants to assess the impact of the current rules laid out by the market regulator for the Futures & Options (F&O) space, before initiating any further reforms.

In an exclusive interaction with CNBC-TV18, Pandey said that they are concerned about the short-term dated options, but different measures have been put in place for to curb excessive speculation at different points of time in the year gone by.

"I think we are concerned more about short term dated options, weekly options where we said that you know the activity was high, there was a hyperactivity, not necessarily serving a very great economic purpose," the SEBI Chairman said.

Over the course of the last 12 months, the regulator has introduced different risk metrics for the F&O space, such as position limits, upfront payments, expiry day margins and so on, the latest being introduced in December, which included the removal of the one-day grace period for index derivative limits, introduction of a pre-open session for futures as well, along with real-time intraday monitoring of market-wide position limits (MWPL).

Pandey intends to continue to monitor these measures first and assess the kind of impact they have on the market as a whole before suggesting any further reforms. "We will continue to monitor this and have the data put it out before taking any suggesting any measures," he said, adding that the timeline for introducing any new measures is not something that is an area of emphasis currently.