Sebi wants to reduce high derivatives-to-cash turnover

Sebi feels entry requirements for individuals and even brokers for the derivatives segment require more stringent rules

The Securities and Exchange Board of India (Sebi) is planning measures to reduce the high proportion of derivatives-to-cash turnover in the market. It is considering, among others, limits on the number of open positions and restrictions on entry of small investors in the derivatives segment. On the cash side, Sebi is willing to take steps to boost the stock lending and borrowing mechanism and allow higher margins for trading. The aim is to make the cash segment attractive.

Trading volumes in the domestic market are skewed in favour of futures and options (F&O), with Rs 15 getting traded in the