MUMBAI: Markets regulator Sebi is anticipated to take steps to rein within the retail frenzy in F&O buying and selling in a board assembly on Sept 30. These choices may embody tightening of guidelines for the speculative futures & choices phase of the market and stricter margining system, sources stated.
The Sebi board can be anticipated to offer its nod for a ‘new asset class‘ that was proposed by the regulator in July.It can function an funding product for wealthy traders that might be a hybrid product combining options of mutual fund plans and portfolio administration schemes.
This might be Sebi’s first board assembly since US-based short-seller Hindenburg got here out with a report on Aug 11, alleging battle of curiosity circumstances involving Sebi chief Madhabi Puri Buch and husband Dhaval Buch. Each have denied all allegations.
The board may permit a brand new set of laws that is geared toward passive-only fund homes since these tech-driven entities don’t want to stick to each stringent norm relevant to actively managed mutual funds.
On July 30, Sebi had floated a session paper on some adjustments that the regulator needed to usher in within the fairness F&O phase. Final month, Sebi chief had stated it had acquired greater than 6,000 feedback on the identical. Among the many adjustments Sebi had proposed is to permit just one index-based weekly contract on every derivatives trade. The rule may rein in unabated speculative buying and selling within the F&O phase however on the similar time could possibly be a drag on the turnover, income and therefore income of the exchanges that run these segments, high bourse officers had stated.
Speculative buying and selling within the F&O phase has reached a degree the place, in the course of the three-year interval ending March 2024, solely 7 out of 100 retail merchants had made cash, a current Sebi examine confirmed. Retail merchants as a gaggle misplaced a mixed Rs 1.8 lakh crore in the course of the examine interval, that’s FY22 to FY24.
