Sebi Chief warns of derivatives market growth, calls for regulatory intervention to curb speculation and prepares consultation paper.

Sebi Chief Madhabi Puri Buch warns of the macro issue of explosive derivatives market growth, with daily turnover in futures and options (F&O) nearing Rs 400 trillion. Buch emphasizes the need for regulatory intervention to curb speculative activities jeopardizing household savings and economic stability, and Sebi is preparing a consultation paper to reduce turnover in the derivatives market. Discussions include reviewing current regulations and product offerings, such as lot size and limiting option expiries.

July 19, 2024
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