The Securities and Exchange Board of India (SEBI) is reportedly evaluating stricter norms for accessing derivative trading, introducing new suitability criteria. This potential move has sparked discussions among market participants and experts regarding its timing, scope, and likely effects on the trading ecosystem.
To shed light on the implications, CNBC-TV18 consulted K. Suresh, National President of the Association of National Exchanges Members of India (ANMI), and Rajesh Baheti, Managing Director of Crosseas Capital Services. Baheti, who has previously supported eligibility-based rules over product-specific restrictions, voiced concerns about the timing of these proposals. He noted that recent regulatory interventions have already dampened exchange volumes and brokerage revenues. Baheti emphasized the importance of distinguishing between traders relying solely on their salaries and those with adequate financial backing to manage potential losses.
From the brokerage sector’s perspective, K. Suresh highlighted ongoing industry pushback against regulatory measures. ANMI has formally requested SEBI to reinstate Bank Nifty weekly contracts. According to Suresh, the suspension of these contracts has caused a 45% drop in options trading volume, directly impacting brokers’ earnings and threatening employment within the sector.
