Sebi forms 15-member working group to review derivative trading norms

The working group has representatives from the market ecosystem, such as the exchanges, brokers, and academicians

The Securities and Exchange Board of India (Sebi) has formed a working group to review derivatives trading norms with an aim of enhancing investor protection and risk management, said people aware of the development.

The 15-member panel will be headed by G Padmanabhan, former executive director of Reserve Bank of India (RBI). It will be tasked with market development and regulation to enhance risk architecture of exchange-traded derivatives and investor protection.
 

The working group has representatives from the market ecosystem like the exchanges, brokers and academicians.
 

The market regulator will also be taking up another proposal in its upcoming board meeting this week on eligibility criteria for single stocks for entry into the derivatives segment.
 

Another committee of Sebi with members from stock exchanges and brokerage firms on Friday reviewed the suggestions and comments submitted on the proposal of F&O eligibility.
 

The retail participation in the F&O segment has grown multi-fold even after a study by the market regulator showed that nearly 90 per cent of them incur losses. Earlier this month, RBI governor Shaktikanta Das had indicated that Sebi and RBI were monitoring the rising volumes in the derivatives segment.