Sebi meets market players to discuss derivatives overhaul

Sebi is concerned over retail participation, feels investors don't use derivatives as hedging tool

The Securities and Exchange Board of India (Sebi) has initiated discussion with various stakeholders, including brokers, exchange officials and foreign investors, for overhaul of the derivatives segment.

According to sources, Sebi officials met representatives of exchanges and select brokerages to discuss possible changes in futures and options (F&O).

Last week, the market regulator issued a discussion paper titled ‘growth and development of equity derivatives market in India’. In this, it raised concern over the high turnover in derivatives, relative to the cash market, calling for “alignment” between the two. It also raised concern over the growing participation of individual, less-wealthy,