NSE chief proposes retail barriers to entry on derivative markets amidst speculation losses

National Stock Exchange (NSE)’s CEO Ashish Kumar Chauhan projected minimum qualifying criteria for participating successful derivatives marketplace akin to Singapore oregon USA regulators, speaking astatine a closed doorway lawsuit astatine Mumbai.

“Developing countries similar India cannot let implicit speculation by little strata of the economy. Hence, much and much regulations volition travel from governments, regulators and exchanges — to curb implicit speculation till the clip cognition of the little strata of nine doing implicit speculation continues. No processing state tin let its little strata citizens to discarded their money, vigor and resources implicit speculation,” said Mr. Chauhan.

His comments travel a time aft the securities appellate tribunal adjourned the Jane Street’s entreaty against SEBI’s interim bid alleging it of manipulating the derivative markets. A survey by SEBI had earlier noted  91% of retail investors suffer successful the derivative marketplace and astir each of FPIs traders’ derivative profits came from algorithmic trading. 

While the apical brag of the world’s largest derivative marketplace by measurement projected immoderate benignant of suitability framework, the Chairperson of SEBI, Tuhin Kanta Pandey, had already made it wide weeks agone connected the sidelines of an lawsuit that the regulator “was not contemplating” immoderate changes to the existent regulations connected derivatives. To beryllium sure, measures taken by SEBI successful presumption of doing distant with play expiries for immoderate derivative contracts reduced the volumes. Further, the Union Budget announcement to summation securities transaction taxation is wide expected to chopped volumes.