Global F&O players push back against Sebi rule revamp
Business Standard
|March 18, 2025
The Futures Industry Association (FIA), a global derivatives market body representing members ranging from clearing corporations to foreign portfolio investors, has voiced strong opposition to the Securities and Exchange Board of India's (Sebi's) proposed overhaul of open interest (OI) calculation and position limits for index futures and options (F&O).
In a detailed 13-page response to Sebi's consultation paper, the FIA warned that the proposed measures could inadvertently increase the risk of price manipulation, reduce market liquidity, raise trading costs, and introduce operational complexities.
The FIA observed, "These changes may lead to wider bid-ask spreads, heightened market volatility, and reduced participation from institutional investors, ultimately undermining market depth and efficiency. While intended to enhance risk management, these restrictions could create inefficiencies that may paradoxically increase the likelihood of price manipulation."
Dit verhaal komt uit de March 18, 2025-editie van Business Standard.
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