look news india
Ahmedabad: The Indian stock market is touching new heights one after the other, but on the other hand, the government, regulator SEBI and the Reserve Bank of India remain concerned about the influx of retail investors in the futures market segment of the stock market. However, now the demand for strict regulation in the market is in full swing.
After the SEBI board meeting yesterday, Chairman Madhabi Puri Buch told in a press conference that the stock selection criteria in F&O i.e. Futures and Options have been approved. A circular will be issued with the new rules on which the entry and exit of stocks in F&O will be shown. The total number of futures market stocks will be between 180-185.
SEBI has implemented major changes in equity derivatives regulations, which impact stock selection for F&OS. The major changes include the introduction of the average daily delivery value of shares in the cash market over the last 6 months at Rs. 35 crore and a market-wide position limit criterion of at least Rs. 1,500 crore, to qualify for the futures market segment.
SEBI has also introduced a product success framework to prevent market manipulation by illiquid securities. Derivatives will be closed if trading volumes remain low for more than 6 months. These changes are aimed at strengthening the connection between cash and F&O markets and enhancing investor protection.