SEBI refused to impose new restrictions

If you actively trade in the derivatives segment of the stock market, then this news is important for you. Securities and Exchange Board of India (SEBI) whole-time member Ananth Narayan on Saturday clarified that the regulator is not planning to take any new steps to stop or restrict activity in the derivatives segment.

Expert group will improve the system

Ananth Narayan said that an expert group has been formed under the leadership of former Executive Director of the Reserve Bank, G Padmanabhan, which is working on improving the system of the derivatives market. Apart from this, some steps are being considered for risk management and ease of doing business.

“SEBI is not against derivatives”

Narayan said at a SEBI event that derivatives have an important contribution in pricing and providing depth to the derivatives market. SEBI clarified that any changes made to improve the market will be implemented only after consultation.
He also said that it is necessary to maintain a balance of liquidity in the cash and derivatives markets so that the depth and volume in both the segments is broad.

Some restrictions were implemented last year

SEBI had imposed some restrictions in November 2024 to curb highly volatile trading in the futures and options (F&O) market. The move was taken based on data that found that 93% of investors in the F&O market have suffered losses in the last three years.

Possibility of new changes in derivatives market

Ananth Narayan said that SEBI is working on better measuring the risk of the derivatives market and making it more transparent. He said that the purpose of bringing changes in the derivatives segment is to provide better convenience and security to traders, and not to restrict their activities.

Headlines

• SEBI is not planning to impose new restrictions in the derivatives market.
• The expert group is working on improving the system of derivatives market and risk management.
• There will be extensive consultation before any changes are implemented.
• Maintaining a balance of liquidity in the cash and derivatives markets is a priority.