Sebi weighs longer-term futures and options contracts

SEBI is examining whether to introduce longer-term futures and options contracts, a move that could broaden India’s derivatives market if it advances into a formal proposal.

The review was disclosed by SEBI chairman Tuhin Kanta Pandey and reported on June 12, 2026. Pandey also said the regulator is looking at expanding commodity derivatives and working with the Reserve Bank of India on bond index derivatives.

What SEBI is reviewing

Pandey said SEBI is examining longer-term futures and options contracts, but no formal proposal, consultation paper or implementation timeline has been announced.

The comments point to a live policy review rather than a settled rule change. The regulator has not said what tenor changes it would consider, or whether any shift would begin with index derivatives, stock derivatives or commodity contracts.

Why it matters

Any change to contract tenor could affect how investors and trading firms hedge risk in India’s derivatives markets. Longer-dated contracts may also influence liquidity, trading strategies and product depth if SEBI moves ahead.

The broader review matters because SEBI is also weighing changes to commodity derivatives and bond index derivatives. Together, those steps could expand participation in more market segments if they are eventually adopted.

What comes next

The next milestones to watch are an official SEBI consultation paper, a board note or a circular. Market participants will also be watching for reactions from exchanges, brokers and large derivatives traders.

For now, the development remains a policy review, not a final decision.