Mumbai, 30 April (IANS). Tuhin Kant Pandey, president of the Securities and Exchange Board of India (SEBI), said on Wednesday that the board is actively working on improving the rules related to derivative market, its purpose is to provide security to retail investors, as well as ensure that market activities are not affected.
Pandey clarified that SEBI futures and options are not trying to clamp down on the market, but are adopting a balanced view.
Discussing the recent proposals of the regulator from the NDTV profit, he said that its goal is to improve market structure and reduce unnecessary risk for small investors.
Pandey said, “We are constantly reviewing the market and collecting feedback and where necessary, we are ready to adjust.”
Earlier, SEBI had issued a consultation paper on proposed futures and options reforms.
Pandey said, the regulator has received more than 800 public comments on it.
These comments are now being carefully investigated and the final decision will be taken soon on the proposed changes.
The chairman of SEBI said that many of the proposed measures do not require approval in the board meeting and can be applied directly through administrative processes.
This means that new changes can be implemented quickly after being finalized once.
The new proposed rules include changing how to calculate the Open Interest (OI) in the Equity Derivatives Market.
Last year, SEBI also expressed concern over high business volumes in the Futures and Option segments and issued a report revealing that nine out of ten retail investors were incurring losses in derivative business.
-IANS
ABS/
