Sebi wants more safeguards for F&O trades to shield small investors

Is against dictating IPO pricing; calls for greater disclosures and transparency

The Securities and Exchange Board of India (Sebi) is considering further safeguards to shield small investors from the risky derivatives market. Since the future and options (F&O) segment accounts for a bulk of trading volume, there are concerns around gullible investors dealing in this segment without fully understanding the risk.

Speaking at the 19th Annual Capital Markets Conference organised by industry body Federation of Indian Chambers of Commerce & Industry, Sebi Chair Madhabi Puri Buch said the regulator doesn’t believe in restricting retail entry into the F&O segment, but wants to reinforce disclosures around dealing in the F&O segment.

“I don’t think