BSE shares surge over 3% as SEBI chair assures no disruption in derivatives market; new index launch adds momentum

Shares of BSE jumped nearly 3% in early trade on Monday after reassuring comments from Securities and Exchange Board of India Chairperson Tein Songwho said the regulator does not intend to disturb the derivatives marketeasing concerns around potential regulatory tightening.

Investor sentiment improved after Pandey, speaking at the 15th International Capital Market Convention organised by the Association of National Exchanges Members of India, clarified that while SEBI continues to strengthen market oversight, its approach towards derivatives remains stable and constructive. His comments came amid heightened sensitivity around derivatives regulations, which play a key role in exchange revenues.

Adding to the positive momentum, BSE’s wholly owned subsidiary, BSE Index Servicesannounced the launch of the ‘BSE All Derivative Stocks Index’. The new index is designed to track the performance of derivative-eligible stocks within the BSE 500 universea move seen as strengthening BSE’s product ecosystem and broadening institutional participation.

Beyond equity derivatives, Pandey highlighted that SEBI is examining the introduction of bond derivatives as part of its broader effort to deepen India’s corporate bond market. He noted that the regulator is also facilitating the growth of municipal bonds through regulatory reforms and outreach initiatives, signalling an expansion of market depth across asset classes.

The SEBI chief also spoke about the regulator’s push towards a smarter and simplified regulatory architectureciting upcoming frameworks such as the Stock Broker’s Regulations 2026which aim to streamline compliance, rationalise penalties and introduce a single-point reporting platform. He further highlighted the proposed Securities Markets Code (SMC), 2025which seeks to move India’s capital markets towards a unified, principle-based framework.

Separately, on the sidelines of the event, Ashishkumar ChauhanMD and CEO of the National Stock Exchange, said the exchange is working on gold dematerialisationwhich would allow investors to deposit gold into depositories and trade against it—an initiative expected to improve efficiency and financialisation of gold.

Overall, the combination of regulatory clarity on derivatives, new index launches, and signals of market-friendly reforms lifted sentiment around BSE, driving the stock sharply higher in Monday’s session.