India's Regulator Moves to Limit Soaring Options Trading Amid Rising Risks

Reported 8 days ago

India's securities market regulator, the Securities and Exchange Board of India (SEBI), is set to introduce measures aimed at curtailing the dramatic increase in derivatives trading, which has seen retail participation soar to unprecedented levels. Proposed changes include restricting the number of weekly options and increasing the minimum contract size. This comes in response to concerns about retail investors facing significant losses in the speculative market while reallocating household savings into riskier assets. The changes, which reflect the regulator's desire to minimize speculative activity without hindering the utility of derivatives for hedging, may be implemented gradually.

Source: YAHOO

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