Mumbai: Markets regulator Sebi on Sunday proposed to tighten the selection criteria for stocks that could be traded in the derivatives segment. As part of the proposed rule, it could eliminate those stocks that have low investor participation and yet are included for trading in the futures & options (F&O) segment of the bourses.
In the consultation paper, Sebi said that it was in 2018 that the rule for selection of stocks to be included for trading in the derivatives segment was revised.Since then while the trading turnover in the cash segment has jumped about 3.5 times, the number of securities traded in the derivatives segment has fallen from 207 to 182.
Average daily delivery value in these stocks has also gone up by over three times. “The broad market parameters have shown significant growth. In turn, the criteria for entry and exit of stocks in the derivatives market should keep pace with the evolving market,” it said in the paper.
Since Covid, turnover in the F&O segment has also gone up manifold, raising concerns among govt and the policymakers to tighten rules for trading in the segment, especially for retail investors. Recently the FM and the chief economic adviser had both raised such concerns on public forums.
According to a Nuvama report, about 24 stocks could be excluded from the current list of those in which derivatives trading is allowed, while 78 stocks could be added.
In the consultation paper, Sebi said that it was in 2018 that the rule for selection of stocks to be included for trading in the derivatives segment was revised.Since then while the trading turnover in the cash segment has jumped about 3.5 times, the number of securities traded in the derivatives segment has fallen from 207 to 182.
Average daily delivery value in these stocks has also gone up by over three times. “The broad market parameters have shown significant growth. In turn, the criteria for entry and exit of stocks in the derivatives market should keep pace with the evolving market,” it said in the paper.
Since Covid, turnover in the F&O segment has also gone up manifold, raising concerns among govt and the policymakers to tighten rules for trading in the segment, especially for retail investors. Recently the FM and the chief economic adviser had both raised such concerns on public forums.
According to a Nuvama report, about 24 stocks could be excluded from the current list of those in which derivatives trading is allowed, while 78 stocks could be added.
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