Business Standard

Friday, February 14, 2025 | 08:02 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Sebi expresses concern over high derivatives-to-cash turnover

Sebi issued a discussion paper on 'Growth and development of the equity derivatives market in India'

Sebi expresses concern over high derivatives-to-cash turnover
Premium

BS Reporter Mumbai
The Securities and Exchange Board of India (Sebi) has expressed concern over high equity derivatives turnover vis-à-vis cash turnover.

For every one rupee of cash turnover, Rs 15.6 (notional value) of derivatives is traded. The derivatives-to-cash turnover in India is the world's second highest, after South Korea, where it is 24 times. Australia, Japan and Spain have a derivatives-to-cash ratio of less than five.

The markets regulator has also raised concern over a lot of individual investors dealing in the derivatives space without understanding the risks.

Sebi on Wednesday issued a discussion paper on 'Growth and development of the equity derivatives market in

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in