Mumbai, Nov 13 (IANS) India’s equities markets regulator Friday decided to allow stock exchanges the flexibility to set the expiry date for equity derivatives.
“Based on recommendations of the Secondary Market Advisory Committee, it has been decided to allow flexibility to the stock exchanges to set the expiry date for equity derivative contracts,” the Securities and Exchange Board of India (SEBI) said in a release.

The regulator, however, cautioned bourses to ensure that there was no change in the specifications of the contract or the risk management framework, while upholding the integrity of the market.

Currently, all equity derivative contracts expire within three months. The National Stock Exchange dominates trading in equities derivatives.

In another announcement, SEBI said it would look at “facilitating transactions in mutual fund schemes” using existing stock exchange terminals that had a reach of over 1,500 towns and cities.

“Units of mutual fund schemes may be permitted to be transacted through registered stock brokers of recognised stock exchanges and such brokers will be eligible to be considered as official points of acceptance,” the regulator said.