SEBI Chairperson Tuhin Kanta Pandey assures a measured, consultative approach to equity derivatives regulations, with no immediate measures planned. This follows recent curbs on speculation and retail losses, emphasizing balanced growth amid surging volumes in India's F&O market.
SEBI Chair Tuhin Kanta Pandey emphasized a methodical strategy for equity derivatives oversight, confirming no new measures are underway. This comes as the regulator prioritizes stakeholder consultations post-2025 reforms like delta-based open interest and liquidity-linked position limits. Volumes have doubled in cash markets over three years, prompting calibrated enhancements.
Key Highlights
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No rushed changes; focus on extending product tenure via consultation papers.
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Prior reforms curb manipulation in F&O bans and single-stock derivatives.
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Aims to deepen cash equity while protecting retail from excessive speculation.
Market Context
India's equity derivatives segment faces scrutiny after SEBI's 2025 study revealed high retail losses, leading to tighter index options caps at ₹1,500 crore net exposure. Pandey's approach balances innovation with investor safeguards, supporting NSE IPO progress without derivatives disruption.
Sources: Reuters (RTRS), Marketscreener, Economic Times, Livemint.