Sebi proposes steps to raise risk monitoring in equity derivatives

SEBI ON TUESDAY proposed measures to enhance risk monitoring and trading efficiency in the equity derivatives market, including the introduction of real-time monitoring of futures and options (F&O) open interest (OI).

- PRESS TRUST OF INDIA New Delhi, February 25

The measures, if implemented, will help market participants make more informed decisions and manage risks more effectively.

The regulator has sought public comments on the proposals till March 17.

Sebi had in October raised the entry barrier and made it more costly to trade in derivatives.

Its latest proposals include changing how open interest on a single-stock derivative is calculated for a more accurate picture of exposure.

Sebi has suggested that market participants should receive intraday snapshots of F&O open interest in near real-time. This will help in better risk management and decision making. It has also proposed changes to exposure limits for mutual funds (MFs) and alternative investment funds (AIFs) in derivatives.