Brokers Association of India Urges SEBI to Restore Bank Nifty Weekly Expiry: What It Means for Markets and Traders

Background: Why Was Bank Nifty Weekly Expiry Discontinued?

In November 2024, the National Stock Exchange (NSE) discontinued weekly expiries for Bank Nifty, Midcap Nifty, and Financial Services Nifty, with the Bombay Stock Exchange (BSE) making similar changes in response to SEBI's directive. From November 20, 2024, exchanges were permitted to offer weekly expiry only for a single benchmark index—this meant only Nifty 50 for NSE and Sensex for BSE kept weekly options. The reform aimed to curb speculative trading and address data showing that nearly 93% of retail traders in index options incur losses, often treating expiry days like "casino" events.

ANMI's Request and RationaleOn 

November 8, 2025, ANMI, the industry body representing stockbrokers, wrote to SEBI Chairman Tuhin Kanta Pandey. Their appeal included two major requests:

• Restore Bank Nifty Weekly Derivative Contracts: Citing the importance of product diversity and liquidity, ANMI argued that the removal of high-velocity trading instruments risks shrinking market participation and undermining brokers’ ability to fund much-needed investor education.
• Recognize and Regulate Trading Academies: ANMI proposed a new regulatory category for Trading Academies (TAs), mirroring the licensing framework for Investment and Research Advisors, aiming to provide structured, multilingual, and ongoing education for retail traders.

ANMI's President, K Suresh, compared SEBI’s approach to banning vehicles due to accidents rather than investing in driver education and licensing. The association stressed that the real solution lies in building a knowledgeable participant base and implementing eligibility criteria for derivatives access, not by constraining the product landscape.

Key Arguments from the Broking Industry

• Revenue Impact: The removal of Bank Nifty weekly options, which accounted for nearly half of NSE’s weekly options turnover, has hit trading volumes hard and directly affected brokers’ revenues. Brokers warn that high-frequency contracts are central for liquidity and industry sustainability—reducing them could lead to consolidation and diminished ability to invest in investor safety initiatives.​
• Market Diversity & Trader Needs: Weekly options are valued for their flexibility, short-term hedging opportunities (such as RBI meetings or bank earnings), lower premium costs, and faster time decay favorable to certain strategies. Many traders have built systems, income streams, and portfolios around the weekly cycle.​
• Education, not Restriction: Both ANMI and many market participants contend that education and eligibility criteria—not withdrawal of products—should be the focus. They propose licensing for trading academies and structured, ongoing educational programs.​

SEBI's Perspective and Policy Context

SEBI's rationale for limiting weekly expiries is rooted in extensive research showing high retail losses, increased volatility on expiry days, and a desire to nudge markets back toward their foundational role: risk management and hedging, rather than unchecked speculation. By limiting weekly options to one index per exchange, SEBI intends to moderate excessive churn and encourage more disciplined, long-term market behavior. The regulator is also considering more stringent suitability norms for retail derivatives access, as well as enhanced transparency on trading concentration and risk.​

Recent communications indicate SEBI is open to revisiting the structure after ongoing consultation and data review, but any quick reversal is not certain. The regulatory tide, for now, continues to favor stability and investor protection.​

Trader Sentiment: A Divided House

The debate is polarized. Critics of the restriction argue that it punishes discipline and stifles market innovation, with the brunt borne by brokers, active retail traders, and even hedgers seeking cost-efficient tools for event risk.​

Supporters, including some institutional voices, counter that India’s hyperactive options market had reached unsustainable proportions, and that a reset—if accompanied by robust education—could yield long-term benefits for both market depth and household finances.​

Looking Forward: What Might Change?

• Possible Restoration: While ANMI’s request is high-profile and supported by sections of the trading community, SEBI has so far only indicated willingness to revisit expiry structures after further consultation and assessment of retail outcomes.​
• Emphasis on Education: The strongest consensus is around ramping up investor education, risk frameworks, and eligibility screening—ANMI’s trading academy proposal is gaining traction as part of a broader push to protect participants without resorting to blanket bans.
• Product Evolution: Even if weekly Bank Nifty options return, expect heightened entry criteria for retail derivatives trading, ongoing surveillance of trading activity, and continued regulatory dialogue between market stakeholders.

Conclusion

The Indian broking community, via ANMI, has made a formal appeal to SEBI to restore Bank Nifty’s weekly expiry—arguing that intelligent reform, not restriction, will best protect investor interests and market vibrancy. As the debate unfolds, the focus will likely shift to a collaborative model combining product innovation, robust risk controls, and a new emphasis on education and trader licensing—a blueprint many global markets already follow.