Regulator Sebi will float a consultation paper to develop equity derivatives markets in the country in line with the emerging trends and global best practices.
A draft paper on "Growth and Development of Equity Derivatives Market in India" was presented before the Sebi's board today.
Now, Sebi has decided to have consultation with stakeholders on the need "to review the derivatives market framework, including product suitability for investors, so as to further strengthen the framework in line with the emerging trends and global best practices".
Besides, the regulator has exempted private equity funds and real estate funds or Category II Alternative investment funds (AIFs) from the one-year lock-in requirement in initial public offerings (IPOs).
Currently, the entire pre-IPO holding of such investors can not be sold for one year after the listing.
"Presently, in case of an IPO, there are relaxed rules for lock-in provision to Category I AIFs. The board approved the proposal for extending such relaxation to Category II AIFs also," Sebi said.
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