More regulation needed to curb retail speculation in F&O'

Indian stock markets are volatile at a time when the regulator, Securities and Exchange Board of India (Sebi), has introduced measures to curb speculative bets in futures and options (F&O). AMISHA VORA, chairperson & managing director of PL Capital - Prabhudas Lilladher, told Nikita Vashisht in an email interview that India had strong fundamentals for sustained market growth despite global uncertainties, "mitigating concerns of a bubble". Edited excerpts:

How do you read the current market scenario?

Developments such as the depreciation of the Japanese yen, an increase in interest rates in Japan, and a slowdown in the US economy, as suggested by jobs data, indicate that a confluence of these global factors, which impact funds flow from FIIS (foreign institutional investors), can trigger a corrective phase in the equity markets. But despite global uncertainties, India's strong fundamentals provide a solid foundation for sustained market growth, mitigating concerns of a bubble.

Do you think Sebi's proposals for F&O trading will curb rampant derivative trading by retail investors?