How Sebi’s serial crackdown crimped F&O volumes and crashed broking-firm stocks
2 weeks, 5 days ago

How Sebi’s serial crackdown crimped F&O volumes and crashed broking-firm stocks

Live Mint  

India's derivatives market, once a powerhouse of financial activity, has gone relatively quiet in recent months, causing the stocks of capital-market-focused firms to go into freefall. Stock exchanges, brokerages, and other financial intermediaries have seen their revenues decline sharply owing to decreased trading activity in the derivatives market. It was a time of unbridled optimism in the Indian derivatives market, with average daily trading turnover soaring to an unprecedented ₹537 trillion. Even a spike in market volatility in January failed to significantly boost derivatives turnover, suggesting that Sebi’s structural changes had fundamentally altered market dynamics. Adapting to the new normal Critics may argue that the new regulations have gone too far, stifling market liquidity and potentially driving trading activity offshore or to unregulated platforms.

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History of this topic

BSE Ltd stock tanks on Sebi proposal to tighten F&O rules. Are investors overreacting?
2 weeks, 6 days ago

BSE Ltd stock tanks on Sebi proposal to tighten F&O rules. Are investors overreacting?

Live Mint  

BSE Ltd stock is down about 20% since closing at ₹5,609 on 24 February, owing to a new consultation paper from markets regulator Sebi later that day. Calculating open interest Currently, calculating open interest is based on notional value, and Sebi recommends shifting to a delta-based future equivalent calculation. For most investors, there’s no need to grapple with terms such …

Will there be another derivatives dampener? NSE seems to think so
1 month, 2 weeks ago

Will there be another derivatives dampener? NSE seems to think so

Live Mint  

India's top stock exchange is on the watchout for fresh measures from the stock market regulator to cool the derivatives frenzy, even as a slew of recent measures begin to take effect. Chief business development officer Sriram Krishnan said the decline partly reflects recent Sebi measures. "We estimate a short-term impact of 13% to 14% on total net income due …

Difficult to say Indian stock market has bottomed out; Budget may boost sentiment: Ajay Menon of Motilal Oswal
1 month, 3 weeks ago

Difficult to say Indian stock market has bottomed out; Budget may boost sentiment: Ajay Menon of Motilal Oswal

Live Mint  

Expert view: Ajay Menon, MD & CEO of Wealth Management, Motilal Oswal Financial Services Ltd., believes several key events will keep the market sentiment cautious in the near term, making it difficult to say if the Indian stock market has bottomed out. Hence, we anticipate that expected income tax reforms and increased infrastructure funding will likely boost market sentiment and …

Indian Stock Derivatives Turnover May Drop Below $2 Trillion as Sebi Curbs Take Hold
2 months ago

Indian Stock Derivatives Turnover May Drop Below $2 Trillion as Sebi Curbs Take Hold

Live Mint  

Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. More pain ahead for capital goods shares Capital goods stocks, which have been the poster boys of the market rally, were also swept up in the December-quarter selloff, driven by concerns about expensive valuations. Analysts at Kotak Institutional …

Sebi to enhance risk metrics in F&O to curb manipulation fears in cash, derivative markets: Ananth Narayan G
2 months, 1 week ago

Sebi to enhance risk metrics in F&O to curb manipulation fears in cash, derivative markets: Ananth Narayan G

Live Mint  

India's capital markets ecosystem has seen significant growth, but the challenges of preserving trust and ensuring effective regulation are ever-present, said Ananth Narayan G., whole-time member of the Securities and Exchange Board of India. "Even as we judge the impact of these steps over the next few months, we are now looking at ways to grow the F&O ecosystem so …

No more curbs on derivative trade: Sebi
2 months, 1 week 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 …

Derivatives decline: Where did F&O volumes disappear?
2 months, 3 weeks ago

Derivatives decline: Where did F&O volumes disappear?

Live Mint  

With trading volumes in futures and options shrinking dramatically, a pressing question emerges: where did these volumes go? To protect investors and rein in speculative trading, India’s markets regulator took decisive measures targeting the derivatives segment, including reducing weekly option products that dominated trading volumes. A trend emerging from this data is a likely shift of trading volumes from index …

Sebi suspends Bharat Global trading after stock rally 10,000 per cent in one year
Trending News
3 months ago

Sebi suspends Bharat Global trading after stock rally 10,000 per cent in one year

New Indian Express  

MUMBAI: The market regulator Sebi has ordered the suspension of trading in Bharat Global Developers’ stocks, which have surged more than 10,000 per cent in the past year. The decision came after it was discovered that the company had falsely claimed to have secured large orders from marquee corporates like Reliance, Tata Group, UPL, and McCain India Agro. In a …

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

Are SEBI’s new F&O rules successful in curbing Indian stock market’s volatility? Experts weigh in
3 months, 2 weeks ago

Are SEBI’s new F&O rules successful in curbing Indian stock market’s volatility? Experts weigh in

Live Mint  

However, the efficacy of these changes is now being questioned by experts, as they anticipate some unintended consequences.Earlier this year, the Securities and Exchange Board of India announced new rules to tackle high volatility in the derivatives market and safeguard the interest of retail investors. Impact on Retail Traders Retail investors, who are often drawn to the quick profit potential …

Derivative curbs: Don’t throw the baby out with the bathwater
4 months, 2 weeks ago

Derivative curbs: Don’t throw the baby out with the bathwater

Live Mint  

The explosion of trading in futures and options has been a remarkable feature of India’s equity market. For starters, total loans against shares in India extended by banks and non-banking financial companies are estimated to be less than ₹1 trillion, a tiny fraction of India’s aggregate market capitalization. Further, thanks to very large margin requirements on brokers, a significant proportion …

SEBI curbs on F&O trade may hit F&O volumes: Experts
5 months, 3 weeks ago

SEBI curbs on F&O trade may hit F&O volumes: Experts

The Hindu  

The Securities and Exchange Board of India imposition of curbs on derivatives to protect investors and ensure market stability may reduce volumes in futures and options contracts, according to experts. A week after a SEBI study noted F&O traders had lost ₹1.8 lakh crore in the past three fiscals, the regulator increased the minimum contract value of F&O trades while …

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 …

How investors will gain from new Sebi reforms
6 years, 6 months ago

How investors will gain from new Sebi reforms

Live Mint  

The Securities and Exchange Board of India has announced several reforms to make the markets more efficient and transparent. The board took steps to reduce transaction costs, improve liquidity, increase market participation, improve capital allocation, penalize fraudulent activities and protect small investors, besides having a more efficient price discovery system. Analysts said that permitting foreign entities in the commodity derivatives …

Sebi to look into physical settlement for stock derivatives
7 years, 6 months ago

Sebi to look into physical settlement for stock derivatives

Live Mint  

New Delhi: As it gears up for an overhaul of equity derivative rules, market regulator Securities and Exchange Board of India on Thursday sought views from stakeholders on whether there is a need to make physical settlement mandatory for stock derivatives. In a consultation paper, Sebi also asked market participants to submit their views on whether physical settlement should be …

Sebi, exchanges step up vigil to tackle 'Brexit' jitters
8 years, 9 months ago

Sebi, exchanges step up vigil to tackle 'Brexit' jitters

Firstpost  

Sebi and stock exchanges have beefed up their surveillance mechanism to deal with any excessive volatility in the run up to the ‘Brexit’ referendum whose outcome is keenly awaited by the investors New Delhi: Sebi and stock exchanges have beefed up their surveillance mechanism to deal with any excessive volatility in the run up to the ‘Brexit’ referendum whose outcome …

Sebi cracks the whip on speculation
9 years, 7 months ago

Sebi cracks the whip on speculation

Live Mint  

Earlier this month, the Securities and Exchange Board of India raised the minimum contract sizes of equity derivatives from ₹ 2 lakh—a limit that was set in 2000—to ₹ 5 lakh. In an earlier column in this paper, we had argued by using data from Sebi and the stock exchanges that India’s equities markets are distinctly speculative in character and …

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