BSE, Angel One, Nuvama Wealth Shares Rise Up to 5% Ahead of Sebi Meet Over F&O Expiry

Shares of capital market players BSE, Nuvama Wealth  and Angel One surged up to 5% on September 12 as investors await the outcome of market regulator, Securities and Exchanges Board of India’s (Sebi) meeting later in the day.

The rebound in the shares of BSE came after a sharp 5% fall in the previous session, triggered by reports that the regulator may soon issue a consultation paper proposing the end of weekly futures and options (F&O) expiries. CNBC-TV18 had reported that Sebi is exploring a shift towards longer-tenure derivatives, potentially moving expiries to a fortnightly or monthly cycle.

Global brokerage Jefferies, in a note to clients, highlighted that speculation around such changes has not yet been confirmed by either Sebi or the exchanges. Even so, it ran scenario analyses for BSE and Nuvama Wealth, flagging possible earnings risks. Jefferies estimated that a shift to fortnightly expiries, with separate settlement days across exchanges, could cut FY27 earnings per share by 20–50% for BSE and by 15–25% for Nuvama.

The brokerage further suggested that if both the National Stock Exchange and BSE moved to fortnightly expiries on separate days, industry-wide index options notional average daily turnover (ADTO) could fall by 55%, while premium ADTO might drop by 45%. For BSE specifically, it projected that options revenue in FY27 could decline by 38%, resulting in a 22% fall in consolidated revenue and a 21% hit to net profit.

Despite those risks, Jefferies noted that BSE’s market share remained steady at around 29% in August, showcasing resilience in the face of regulatory uncertainty.

Meanwhile, CNBC-TV18 reported that Sebi may take up several proposals beyond derivatives reform at its board meeting. These include easing stake dilution norms for mega IPOs, broadening the scope of credit rating agencies, revamping rules for registrars and brokers, and strengthening governance standards for exchanges.

For investors, today’s Sebi board meeting is expected to be closely watched not only for clarity on the F&O expiry debate, but also for signals on the trajectory of broader regulatory reforms in India’s capital markets.