India's central bank warns of risks from rapid rise in retail derivatives participation and potential market volatility.
India's central bank warned of potential challenges posed by the rapid rise in derivatives trading volumes, especially with retail investors participating without proper risk management. The Reserve Bank of India's Financial Stability Report noted that the equity derivatives market has seen an increase in participation from retail investors, rising by 42.8% in a year. The surge in shorter duration options could lead to more volatility in stock markets.
June 27, 2024
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