Derivatives aren't weapons of mass destruction: NSE chief Vikram Limaye

Increased investor participation an encouraging sign, says Sebi's Ajay Tyagi

Vikram Limaye, managing director and chief executive officer of the National Stock Exchange of India, on Wednesday said derivatives were not the “weapons of mass destruction” they were made out to be. At least not in India.

This perception was based on how the derivatives markets are structured globally, where most of the transactions are ‘over the counter’. “Equity derivatives contracts in India can be traded only on recognised stock exchanges. The Securities and Exchange Bo­ard of India (Sebi) has put together a well thought-out framework for trading that mandates use of advanced statistical and risk management tools including margining