SEBI To Likely Relax Proposed Limits On Index Options Trading: Report

New Delhi: Capital markets regulator, the Securities and Exchange Board of India (SEBI), is prone to ease the proposed curbs on buying and selling in index choices, It is prone to introduce a miles upper threshold for internet and gross place limits, an NDTV Profit record stated on Sunday, mentioning folks conscious at the subject.

SEBI is most probably “leaning towards allowing a net end of the day limit of Rs 1,500 crore and a gross limit of Rs 10,000 crore (each side) for Index Options”. “As per the previous proposal of the regulator, the net end of the day limit was Rs 500 crore only with a gross limit of Rs 1,500 crore,” the record famous.

Intra-day buying and selling in index choices could be exempt from any cap. Instead, a strong surveillance protocol might be applied the place exchanges, in coordination with SEBI, will track intraday positions as much as 4 occasions an afternoon.

According to the record, if a dealer’s publicity breaches sure thresholds, the regulator will examine for conceivable focus or manipulation. The regulator could also be transferring in opposition to a delta-based open hobby metric as an alternative of the standard notional means.

This method accounts for the real financial publicity of choices trades slightly than their notional measurement, which may also be deceptive. Last week, SEBI presented stricter regulations to toughen governance at key marketplace infrastructure establishments (MIIs) similar to inventory exchanges, clearing firms, and depositories.

In a transfer geared toward fighting conflicts of hobby and making sure marketplace integrity, the SEBI has made it obligatory for sure administrators to look at a cooling-off duration prior to becoming a member of a competing establishment. “Provided that the non-independent director on the governing board of the depository may be appointed in a recognised stock exchange or a recognised clearing corporation or another depository with the prior approval of the Board, only after a cooling-off period as may be specified by the governing board of such depository,” it stated.