Securities and Exchange Board of India (SEBI) meets today for F&O trading. Benchmark markets, Sensex and Nifty fell more than 1% in anticipation of these moves. The SEBI board is expected to approve proposals for a ‘new asset class’, mutual fund light restrictions, and a rights issue and preferential allotment of shares.
The market regulator also had a consultation paper to introduce mutual fund light regulations for passively managed mutual fund schemes. This relaxed regulatory framework for passive MF schemes aims to reduce compliance requirements, increase penetration, diversify investments and encourage innovation.
SEBI proposed several short-term measures in July this year to curb speculative trading in the F&O segment, including capping the duration of multiple option contracts, increasing option contract size and intraday monitoring. The market regulator has already received around 6,000 responses to its consultation paper on measures to strengthen the index derivatives framework, SEBI said. The Chairperson said last month.
