SEBI reviewing equity derivatives rules; wants to deter retail investors in F&O
SEBI is set to come out with a discussion paper on revising regulations for the equity derivatives segment.
Capital and commodities market regulator SEBI (Securities and Exchange Board of India) is set to come out with a discussion paper on revising regulations for the equity derivatives (futures and options) segment. Among other proposals, the regulator may propose doubling the lot size for a contract to Rs 10 lakh from Rs 5 lakh currently. The idea behind this is to make futures and options unattractive to retail investors, who do not fully understand the risks associated with them.
The broader objective is to encourage retail investors to invest in shares rather than make speculative bets.
After the recent board meeting, SEBI Chairman Ajay Tyagi said the regulator wanted to review the derivatives market framework and introduce suitable products for investors in line with global best practices.
“Our investor survey found that retail investors are not aware of the risk component of the derivatives market; some thought derivatives are safer than bonds,” he had said
Read more at
http://www.moneycontrol.com/news/bu...-to-deter-retail-investors-in-fo-2314013.html
___________________________________
SEBI wants HNI / FII to earn more.