The Securities and Exchange Board of India's (Sebi's) six-step plan to curb retail participation in speculative index derivatives may lead to a substantial drop in volumes - potentially by 30-40 per cent. These measures aim to reduce excessive speculation in the futures and options (F&O) segment, where daily turnover often exceeds ₹500 trillion and retail investors end up on the losing side of the trade more often.
Sebi has decided to increase the contract size from ₹5 lakh to ₹15 lakh, raising margin requirements and mandating the upfront collection of option premiums from buyers.
The new rules will also limit weekly expiries to one benchmark per exchange, bring intraday monitoring of position limits, and remove the calendar spread treatment on expiry days. The steps are to increase the entry barrier for retail investors whose losses have been mounting, according to a recent study by the watchdog.
Analysts had estimated that the curbs may bring down the volumes on the National Stock Exchange (NSE) by nearly one-third. In September, the average daily trading volume for the NSE's cash market segment stood at ₹394 trillion, while that of the BSE was around ₹144 trillion.
Bu hikaye Business Standard dergisinin October 03, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Standard dergisinin October 03, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
39 of World's 100 most polluted cities are from India
China ranks 2nd with 30 cities in S&P Global Mobility survey
One tonne of paddy stubble burnt leads to 20 kg nitrogen loss in soil: Scientists
As Delhi and its adjoining areas reel from a thick blanket of bad air, senior scientists belonging to the Indian Council of Agricultural Research (ICAR) have said each tonne of stubble burnt leads to a loss of no less than 12-13 kg of phosphorus, 35 kg of potassium, and 20 kg of nitrogen in the soil.
Air woes: Delhi hospitals see 50% jump in OPD visits, admissions
Hospitals are witnessing a 40-50 per cent surge in patient visits due to respiratory illnesses, including symptoms of bronchitis and breathlessness, with major cities recording a severe jump in air pollution levels in the last 20 days.
New-age firms' growth gains priced in: Analysts
Investors advised to wait a few quarters before betting on these stocks
Rely on credit cards and unsecured loans, build emergency corpus
Handling the financial aspect of a medical emergency is often a daunting task, since it requires coming up with a significant sum at short notice. Households must prepare in advance for this challenge.
Moderated NTPC Green IPO price band with changing market sentiment: CMD
NTPC Ltd, which is the parent firm of the NTPC Green Energy Ltd (NGEL), on Tuesday said it moderated the price band of the initial price offering (IPO) to be in sync with the changing market sentiments.
Sebi notifies pro-rata distribution norms for AIFs
The Securities and Exchange Board of India (Sebi) has notified the changes in regulations governing alternative investment funds (AIFs) mandating them to provide investors rights and distribution of proceeds in proportion (pro-rata) to their commitments in the scheme.
BALANCED ADVANTAGE FUNDS REMAIN LOW ON EQUITIES
Majority ofthe larger balanced advantage funds (BAFs) raised their equity exposure in Octoberaftertrimmingthe allocation in the previous months. However, in most cases, the equity exposure remained closerto their respective multi-year low levels.
NeW initiatives, margin gain hopes positives for Delhivery
Logistics major Delhivery has had promising Q2FY25 results.
PE ancl VC companies adjust to longer holds after public listing
Startup IPO boom reshapes their investment strategies
