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Illustration: Binay Sinha
According to persons with knowledge of the development, the Securities and Exchange Board of India (Sebi) has established a working group to examine derivatives trading regulations in an effort to improve investor protection and risk management.
G Padmanabhan, a former executive director of the Reserve Bank of India (RBI), will lead the 15-member panel. Its duties will include developing the market and enforcing regulations to improve investor protection and the risk architecture of exchange-traded derivatives.
Members of the market ecosystem, including exchanges, brokers, and academics, are represented in the working group.
During its next board meeting this week, the market regulator will also discuss a different suggestion about the requirements for single stocks to be eligible for entrance into the derivatives segment.
On Friday, a different Sebi committee comprised of representatives from brokerage houses and stock exchanges examined the recommendations and feedback made about the F&O eligibility proposal.
Retail involvement in the F&O category has increased many times despite the fact that about 90% of them lose money, according to a survey conducted by the market regulator. Governor of the RBI Shaktikanta Das had said earlier this month that Sebi and the RBI were keeping an eye on the increasing volumes in the derivatives market.
First Published: Jun 25 2024 | 10:11 PM IST