SEBI urges market reforms amid high losses from expiry-day index options, pushing for longer-tenure derivatives and deeper cash markets.

• Short-term index options dominate volumes, raising concerns over volatility, noise trading, and weakened price discovery.
• Expiry-day index options turnover is 350 times higher than cash markets, highlighting imbalance and structural concerns.
• SEBI calls for extended-tenure derivatives, improved market depth, and constructive engagement from all stakeholders.