India regulator plans steps to limit spill-over of equity derivative volatility
1 month ago

India regulator plans steps to limit spill-over of equity derivative volatility

Live Mint  

By Nimesh Vora and Bharath Rajeswaran MUMBAI - India's markets regulator has proposed rules to curb possible manipulation and limit the spill-over of volatility from equity derivatives into the broader cash market, which has slipped sharply after hitting record highs in September 2024. It also proposed changing the position limit to 15% of the free-float market capitalisation of a stock or 60 times the average daily delivery value, whichever is lower. The regulator also proposed index derivatives other than for the BSE Sensex and NSE Nifty 50 benchmarks only be offered if the index meets certain criteria, to stymie what it called a "nexus" between the cash and derivatives markets. "If a high proportion of index weightage is attributable to a small number of stocks, participants could effectively replicate a large position in those constituents, giving rise to fears or risks of market manipulation and/ or excessive market volatility."

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History of this topic

NSE vs BSE: How Sebi’s curbs are reshaping India’s options market
2 weeks, 5 days ago

NSE vs BSE: How Sebi’s curbs are reshaping India’s options market

Live Mint  

The Securities and Exchange Board of India introduced curbs on options trading with the aim of cooling down market frenzy on expiry day. To curb excessive retail participation in options trading on expiry days, the Sebi introduced six regulatory measures starting October 1 last year. Among these, three key changes impacted trading volumes: restricting weekly contract expiries to just one …

Sebi mulls measures to boost trading convenience, strengthen risk monitoring in equity derivatives
1 month ago

Sebi mulls measures to boost trading convenience, strengthen risk monitoring in equity derivatives

Live Mint  

New Delhi, Markets regulator Sebi on Tuesday proposed measures to enhance risk monitoring and trading efficiency in the equity derivatives market, including the introduction of real-time monitoring of Futures & Options Open Interest. Additionally, Sebi has proposed new position limits for index derivatives to better reflect actual market risks. Currently, position limits are based on notional value, which overlooks real …

India’s markets regulator proposes fresh steps to tighten derivative market rules
1 month ago

India’s markets regulator proposes fresh steps to tighten derivative market rules

Live Mint  

MUMBAI, - India's markets regulator has proposed lowering position limits for equity stock derivatives and tightening rules for index derivatives, in a bid to further reduce the build-up of risk in these markets. In a consultation paper released late on Monday, SEBI proposed that the market-wide position limit for single-stock derivatives should be linked to the cash markets. This will …

Stock market today: 12 BSE-listed companies hit upper circuits; do you own any?
1 month, 1 week ago

Stock market today: 12 BSE-listed companies hit upper circuits; do you own any?

Live Mint  

As many as 12 stocks listed on the Bombay Stock Exchange hit their upper circuit limits on Wednesday, February 19 amid a volatile trading session. Stock market today Indian markets experienced another volatile session on February 19 as an initial sharp sell-off at the opening was swiftly absorbed by buyers. The Nifty Midcap 100 ended the session up 1.56%, closing …

Despite 10% correction, valuation and tariff concerns weigh on Indian market
1 month, 2 weeks ago

Despite 10% correction, valuation and tariff concerns weigh on Indian market

New Indian Express  

India’s stock market continues to reel under pressure despite a repo rate cut by the Reserve Bank of India for the first time in 5 years and optimism surrounding the Union Budget. Market experts feel that concerns related to a possible tariff hike by the US has overshadowed the positivities. The street has also turned its focus on the valuation …

No more curbs on derivative trade: Sebi
2 months, 2 weeks ago

No more curbs on derivative trade: Sebi

New Indian Express  

MUMBAI: The Securities and Exchange Board of India is working to further improve the system, including risk management and the ease of doing business, for trading activities in the derivatives segment, according to a SEBI official who ruled out any plans to impose additional curbs or restrictions on derivative trading. An expert group under G Padmanabhan, a former executive director …

Mint Primer: A new era awaits India’s F&O market in 2025
3 months, 1 week ago

Mint Primer: A new era awaits India’s F&O market in 2025

Live Mint  

The allure of quick profits and gamification by brokerages triggered a retail frenzy in India’s F&O market. Sebi introduced a set of six new measures on 1 October to skim the froth in the domestic derivatives market. Measures like doubling and trebling of index contract sizes to ₹15-20 lakh, an additional 200-basis-point extreme loss margin of 14% for selling contracts …

Indian shares set to open higher ahead of cenbank policy decision
3 months, 3 weeks ago

Indian shares set to open higher ahead of cenbank policy decision

Live Mint  

Dec 6 - Indian shares are set to open higher on Friday, ahead of the Reserve Bank of India's monetary policy decision, with investors anticipating some form of policy easing after a sharp slowdown in economic growth. But since data last Friday showed India's economic growth slowed to a seven-quarter low of 5.4% last quarter, expectations of some form of …

Sebi Proposes Sweeping Changes in Derivative Market to Reign in Speculation
7 months, 4 weeks ago

Sebi Proposes Sweeping Changes in Derivative Market to Reign in Speculation

Deccan Chronicle  

Mumbai: To counter risks to market stability and curb losses made by individual retail investors due to hyperactivity in the equity derivative market watch dog Sebi released a consultation paper seeking comments from market participants by August 20, 2024. The paper seeks to introduce measures to enhance investor protection and promote market stability in derivative markets while ensuring sustained capital …

Sebi proposes tighter rules for derivatives trading on individual stocks
9 months, 2 weeks ago

Sebi proposes tighter rules for derivatives trading on individual stocks

Live Mint  

Mumbai: India's markets regulator has proposed tighter rules on trading in individual stock derivatives, arguing the rules were needed to avert risks of market manipulation after recent explosive growth particularly in options trading. A discussion paper published on Sunday on the website of the Securities and Exchange Board of India said derivatives contracts on individual stocks should have sufficient liquidity …

SEBI proposes curbs on derivative-linked share moves
1 year, 10 months ago

SEBI proposes curbs on derivative-linked share moves

The Hindu  

The Securities and Exchange Board of India, India’s market regulator, proposes measures to contain extreme price movements in shares on which futures and options trade, including longer trading suspensions and restricting price movements. SEBI proposed in a consultation paper late on May 21 that if a share in the futures and options segment falls or rises by 10% a day, …

SEBI proposes tighter regulations to curb share price volatility in futures and options segment
1 year, 10 months ago

SEBI proposes tighter regulations to curb share price volatility in futures and options segment

Hindustan Times  

India’s market regulator proposed measures to contain extreme price movements in shares on which futures and options trade, including longer trading suspensions and restricting price movements. SEBI proposed that if a share in the futures and options segment falls or rises by 10% a day, trading would be suspended for an hour. The Securities and Exchange Board of India proposed …

RBI imposes restrictions on banks for currency F&O trading
11 years, 8 months ago

RBI imposes restrictions on banks for currency F&O trading

The Hindu  

Seeking to arrest the declining value of rupee, the Reserve Bank has imposed restriction on banks with regard to trading in currency Futures and Options with immediate effect. Under the new norms, the banks have been barred from trading in currency futures and exchange traded currency options market on their own. banks should not carry out any proprietary trading in …

Sebi tightens currency derivative norms to curb rupee fall
11 years, 8 months ago

Sebi tightens currency derivative norms to curb rupee fall

The Hindu  

With an aim to help government efforts to stem fall in rupee value, Sebi has tightened the exposure norms for currency derivatives to check large scale speculations in the market. The decision was taken in consultation with banking regulator RBI late on Monday night by Sebi, which regulates the entire gamut of capital markets, including trading in currency derivatives. Currency …

Sebi sets trade limits to prevent flash crashes
12 years, 3 months ago

Sebi sets trade limits to prevent flash crashes

Live Mint  

Mumbai: In an effort to prevent flash crashes on stock exchanges due to erroneous orders or manipulation by brokers, India’s capital market regulator on Thursday imposed pre-trade order limits on exchanges and enhanced risk-management controls for the bourses. A late evening release by the Securities and Exchange Board of India directed the exchanges to reject orders above ₹ 10 crore …

Stock markets to remain volatile despite petrol price hike
12 years, 10 months ago

Stock markets to remain volatile despite petrol price hike

India TV News  

Mumbai, May 27 : In a lacklustre but two-way trade, the BSE benchmark Sensex this week closed with a small rise of 65.07 points or 0.40 per cent while NSE Nifty by 28.95 points or 0.59 per cent. Sensex too bounced back from a low of 15,900 points to close to 16,200.The bold decision to hike petrol prices steeply, fuelled …

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