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Capital markets regulator SEBI is predicted to take measures relating to the Futures and Choices (F&O) phase very quickly, in a bid to boost investor safety, its senior official stated on Tuesday (October 1, 2024).
As well as, SEBI has urged the federal government to introduce tax breaks for subscribers of municipal bonds, that are essential for funding infrastructure growth.
The regulator will make a case for a tax break for municipal bonds throughout a gathering with the finance fee, the regulator’s complete time member Ashwani Bhatia stated.
Since 1997, municipalities have raised ₹2,700 crore by bonds for infrastructure tasks.
Speaking about F&O, Mr. Bhatia stated,” Sebi could be very quickly going to do one thing about F&O research has come (not too long ago)”.
The regulator, in its session paper not too long ago, proposed seven measures to tighten the foundations for index derivatives– revise the minimal contract measurement and require upfront assortment of possibility premiums intra-day monitoring of place limits, rationalisation of strike costs, removing of calendar unfold profit on expiry day and improve in close to contract expiry margin.
If applied, these measures would assist in enhancing threat administration and improve transparency within the derivatives market.
In its session paper, the regulator had steered to revise the minimal contract measurement for index derivatives in two phases, contemplating market development.
In part 1, the minimal contract worth on the time of introduction ought to be between ₹15 lakh and ₹20 lakh. After six months, part 2 will elevate the minimal worth to between ₹20 lakh and ₹30 lakh.
The present minimal contract measurement of ₹5 lakh to ₹10 lakh was final set in 2015.
A current research by SEBI revealed that 93% of over 1 crore particular person F&O merchants incurred common losses of round ₹2 lakh per dealer (inclusive of transaction prices) through the three years from FY22 to FY24. The combination losses of particular person merchants exceeded Rs 1.8 lakh crore over the three-year interval between FY22 and FY24.
The report highlights a rise within the loss-making particular person buyers in F&O in comparison with 89% in FY22.
Printed – October 02, 2024 04:00 am IST
