Expert panel to meet on July 15, discuss steps to lower risks in derivatives market
Sebi's panel, led by G Padmanabhan, will meet July 15 to discuss equity derivatives measures, addressing speculative expiry day trades. It includes increasing lot sizes, enhancing margins, upfront premiums, and intra-day monitoring. Chairperson Madhabi Puri Buch highlights investor protection. Derivative turnover rose from ₹210 lakh crore in FY18 to ₹500 lakh crore in FY24, with index options involvement increasing.
An of the Securities and Exchange Board of India () will meet early next week to discuss various measures to lower risks in the market, said two people familiar with the development. "The only agenda of the secondary market advisory committee which is meeting on July 15, is to discuss these short-term measures for F&O segment," said one of the persons.A working group headed by former RBI executive director G Padmanabhan has discussed various proposals including limiting , increasing lot sizes of F&O contracts, enhancing , upfront collection of from buyers of options, and intra-day monitoring of , the person said.
"The trend that we are seeing in the kind of trades that is happening like concentrated in weekly auctions, only on expiry day, in the last one hour. These are just speculative bets. These have no nature of hedging, these have no other nature other than speculation. The question is now that what is it that needs to be done further from an perspective," Sebi chairperson Madhabi Puri Buch had said in a recent interaction with media.
According to Sebi data, the overall derivative turnover was ₹210 lakh crore in FY18, which jumped to ₹500 lakh crore in FY24, she said, adding that individual investors in index options trade jumped to 41% in FY24 from 2% in FY18.
Source: Stocks-Markets-Economic Times
