At BFSI Insight Summit 2025, former Sebi WTM Ananth Narayan G said the markets regulator needs more practitioners in policy roles to balance expertise and depth to reduce regulatory missteps
Indian bond yields have mostly remained immune to global headwinds so far
Morgan Stanley expects Indian markets to deliver a low double digit return in the next decade. However, it expects cash, derivative trading to rise as investors churn aggressively churn portfolios.
The Securities and Exchange Board of India's (Sebi's) move to ban participatory note (p-note) subscribers from taking naked derivatives positions has led to a sharp drop in the active contracts held by foreign investors. The number of active contracts, termed Open Interest, has dropped to a record low of 1.7 million, from 1.9 mn last month. Further, the short positions rolled over by foreign portfolio investors (FPIs) halved to 23 per cent during expiry of July series contracts on Thursday. Rollover is carrying forward of open positions from one series to another. This unwinding has also impacted overall market-wide rollovers, which fell to 77 per cent from 84 per cent last month.Derivatives experts say p-notes could have unwound as much as 95 per cent of their open positions after the Sebi circular on July 10. The heavy unwinding also caused a sharp rally in stocks in the pharmaceuticals and information technology sectors, where they had built short positions. P-notes, also called ..