Day: May 27, 2025

The Securities and Exchange Board of India (Sebi) on Monday announced it will limit the expiries of all equity derivatives contracts to two days per week, either Tuesdays or Thursdays starting next month. 

This move is aimed at curbing hyper-activity on expiry days and reducing concentration risk in the market. 

In March, Sebi had proposed these changes following instances of frequent switches by exchanges on expiry days. 

The regulator believes that spacing out expiry days throughout the week will provide an opportunity for stock exchanges to offer product differentiation to market participants. 

As per Sebi’s circular issued on Monday, every exchange will be allowed to retain one weekly benchmark index options contract on their chosen day (either Tuesday or Thursday). However, exchanges must now seek prior approval from the regulator to modify the settlement day of their derivatives contracts. Sebi has asked stock exchanges to submit their proposals by June 15.

Apart from benchmark index options contracts, all other equity derivatives contracts will have a minimum tenor of one month, with expiries occurring in the last week of every month on the chosen day by the exchange. 

In response to Sebi’s proposal, the National Stock Exchange (NSE) had initially shelved its plan to move expiries to Mondays. However, the exchange has now sought approval from Sebi to shift expiries to Tuesdays. Currently, NSE contracts expire on Thursdays, while BSE contracts expire on Tuesdays. 

If Sebi grants approval to NSE to shift the expiry day to Tuesdays, BSE could find it challenging retaining market share. NSE’s revenue from transaction charges in Q4FY25 declined by 15 per cent quarter-on-quarter due to a reduction in volumes across the cash market and derivatives segment.

The exchange attributed this decline to regulatory changes that limited expiries to one benchmark per exchange. NSE’s management has stated that they do not expect any further loss of market share in the derivatives segment to BSE. 

Sebi’s circular will also hurt exchanges such as Metropolitan Stock Exchange of India (MSE) which was planning to roll out index derivatives with an expiry day unique to it. 

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Rakesh Gangwal is likely to divest about 3.4 per cent stake in IndiGo for ₹6,831 crore via block deals. This is part of his long-term plan to gradually reduce his stake in India’s largest airline, which he cofounded with Rahul Bhatia in August 2006. 

Sources said the floor price for the transaction had been set at ₹5,175 per share, nearly 4.6 per cent below the last closing price of ₹5,424. Currently, Gangwal and his related entities hold a 13.53 per cent stake in IndiGo. 

Investment banking firms Goldman Sachs (India) Securities, Morgan Stanley India Company and J P Morgan India are said to be the placement agents for the stake sale.

Over the past few years, Rakesh Gangwal and his related entities have gradually reduced their stake in IndiGo through multiple block deals. In August last year, Gangwal and his family trust sold a 5.83 per cent stake for about ₹10,500 crore. In March 2024, he offloaded another 6 per cent for ₹6,786 crore. In 2023, his wife Shobha Gangwal sold 3 per cent in August for ₹2,802 crore, and his family a 4 per cent stake for ₹2,900 crore in February.

Gangwal had resigned from IndiGo’s board on February 18, 2022, declaring he would gradually exit his holding over five years.

His decision came in the wake of a feud with copromoter Rahul Bhatia which lasted over two years until December 2021. The dispute became public in July 2019, when Gangwal wrote to the Securities and Exchange Board of India alleging corporate-governance lapses at the airline company — claims that the Bhatia group denied. Both promoters then took the matter to the London Court of International Arbitration, which gave its ruling in September 2021. 

Following this, IndiGo held an extraordinary general meeting on December 30, 2021, where shareholders approved the removal of a clause in the Articles of Association that granted the promoters the right of first refusal on share sales. This paved the way for Gangwal to begin divesting his stake.

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N Chandrasekaran, chairman of Tata Consumer Products, has said in the company’s annual report for FY25 that India remains one of the bright spots of economic growth amid a volatile global environment. 

He said India’s long-term growth is underpinned by strong demographic and economic fundamentals and the ongoing structural reforms. 

“India’s near-term macro outlook remains strong with stable growth expectation in 2025, falling inflation, and ongoing monetary easing. India’s direct exposure to the US is limited as its goods exports to the US are just over 2 per cent of its gross domestic product (GDP), one of the lowest among emerging markets,” he said in his address to the company’s shareholders.

He added that consumer trends like premiumisation, health & wellness, and convenience are gathering pace and quick commerce has seen exponential growth. But physical distribution remains extremely relevant at the same time. 

He also said in today’s uncertain and complex global environment, companies need to stay agile and dynamic.

“The need for strong, resilient, and visible supply chains has never been more critical. Emerging technologies such as Gen AI, robotics, and blockchain are not just buzzwords but essential tools. The green energy transition globally is making notable progress, and this transition is driving substantial investment in technology, electric mobility, renewable power, hydrogen and sustainable fuel,” he added.

Chandrasekaran said that companies must include these trends in their strategies and foster a culture of agility and continuous improvement. 

He added that 2025 started on a positive note with expectation of stable global growth, falling inflation and tailwinds from lower interest rates.

“However, this global macro narrative shifted with rising concerns around global growth and inflation as policy uncertainty rose sharply with dramatic shifts in trade policy. The latest global growth estimates have been revised down,” he added. 

While talking about the company, Chandrasekaran said, “At Tata Consumer, we have adopted an omnichannel strategy to tap into this large and growing opportunity. Gen Z and Millennials are expected to contribute to an increasing share of consumption; by some estimates, 76 per cent of the total consumption by 2030.”

He said that this presents an opportunity for cooking aids, packaged food, healthier & guilt-free snacking, and mini meal options. The company has added all of these to its portfolio in the last few years. 

“The innovation capability we have built along with our portfolio transformation initiatives over the past few years position us well to leverage these emerging trends,” Chandrasekaran said. 

On the fast-moving consumer goods (FMCG) space, he believes that the landscape is evolving rapidly and it is critical for brands to be present where the consumer is. 

“In India, we continued to make strong progress in our sales and distribution expansion, with a total reach of 4.4 million retail outlets. We completed the implementation of a next-gen distributor management system to further enhance sales force productivity. Modern trade and e-commerce/quickcommerce continue to be strong growth drivers, and we have started building pharmacy and hotel, restaurant, and catering (HoReCa) channels,” he added.

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