Tuhin Kanta Pandey: Derivative Markets Are Important For Liquidity And Price Discovery

In an exclusive conversation with Siddharth Zarabi, Group Editor, Business Today, Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), addressed concerns around derivatives regulation and excessive speculation. He clarified that regulatory tightening was targeted at hyperactivity in short-dated options, not the broader derivatives market. Futures and commodity derivatives, he said, remain essential for liquidity and price discovery. Pandey noted that post-COVID retail frenzy and misleading influencers contributed to risky behavior. SEBI introduced risk disclosures, statutory pop-ups and six corrective measures in May 2025, with further steps subject to data-based impact assessment.