Sebi Moves to Tighten Derivative Market Rules

The new proposals follow changes announced in October, where Sebi issued curbs on derivative trading

- Reuters

India's markets regulator has proposed lowering position limits for equity stock derivatives and tightening rules for index derivatives, in a bid to further reduce the build-up of risk in these markets.

The new proposals follow changes announced in October, where the Securities and Exchange Board of India (Sebi) raised the entry barrier for trading in derivatives and made it more costly to trade to protect retail investors.

The fresh proposals come against the backdrop of concerns that volatility from the futures and options market is spilling over into the broader stock market, which has slipped sharply after hitting record highs in September 2024.