Mint Primer: A new era awaits India’s F&O market in 2025
5 days, 5 hours 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 on their expiry days and only allowing weekly expiries for Nifty 50 and Sensex contracts came into effect from 20 November. Measures including mandatory upfront collection of option premiums by brokerages and the removal of calendar spread benefit on expiry days will kick in from 1 February 2025. Since Sebi is uneasy wearing this crown, “we expect an overall 35-40% drop in order volume and 10-15% drop in premium turnover once the remaining measures come into effect next year", said Ashish Nanda, president, digital business, Kotak Securities.

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SEBI Tightens Rules on Offshore Derivative Instruments to Boost Transparency
6 days ago

SEBI Tightens Rules on Offshore Derivative Instruments to Boost Transparency

Deccan Chronicle  

The Securities and Exchange Board of India has introduced significant changes to the regulations governing Offshore Derivative Instruments issued by Foreign Portfolio Investors. A circular issued on Tuesday outlined the new requirements aimed at enhancing market transparency and stability.Under the revised framework, FPIs are prohibited from issuing ODIs with derivatives as their underlying assets or using derivatives to hedge their …

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week
1 month, 1 week ago

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week

Live Mint  

Top News The Securities and Exchange Board of India, in its recent circular, has introduced an abridged Common Application Form for certain Foreign Portfolio Investors. Franklin AMC has launched new fund offers In the mutual fund space, Franklin Templeton Asset Management Company has launched a New Fund Offer for the Franklin India Arbitrage Fund. These developments across regulatory reforms, capital …

Derivative curbs: Don’t throw the baby out with the bathwater
1 month, 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 Proposes Sweeping Changes in Derivative Market to Reign in Speculation
4 months, 3 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 …

Economic Survey 2023-24: Capital markets becoming prominent in India's growth story
5 months ago

Economic Survey 2023-24: Capital markets becoming prominent in India's growth story

The Hindu  

“Capital markets are becoming more prominent in India’s growth story, with an expanding share in capital formation and investment landscape on the back of technology, innovation and digitisation,” according to the Economic Survey 2023-24 tabled in Parliament on July 22. “Despite heightened geopolitical risks, rising interest rates and volatile commodity prices, Indian capital markets have been one of the best …

Sebi proposes tighter rules for derivatives trading on individual stocks
6 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 …

NSE remains world's largest derivative exchange in 2023 for fifth straight year
11 months ago

NSE remains world's largest derivative exchange in 2023 for fifth straight year

Live Mint  

The National Stock Exchange of India emerged as the world's largest derivative exchange in 2023 by the number of contracts traded. Continuing its dominance among peers for five years, the National Stock Exchange of India emerged as the world's largest derivative exchange in 2023 by the number of contracts traded. {{^adFree}} {{/adFree}} “NSE Group has once again emerged as the …

SEBI proposes curbs on derivative-linked share moves
1 year, 7 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, …

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