SEBI Chief Rules Out Options Trading As Market Policy Driver
· Business · Moneycontrol, LiveMint
SEBI Chairperson Madhabi Puri Buch stated that options trading volumes should not dictate market policy or regulatory frameworks. Addressing concerns over speculative activity, she clarified that the regulator focuses on market integrity rather than reacting to retail trading patterns. The regulator is currently preparing a revamp of the Securities Lending and Borrowing Mechanism (SLBM) to improve market efficiency. Further details regarding the specific changes to the SLBM framework were not provided in the report. The regulator continues to monitor systemic risks associated with high-frequency and speculative trading in the Indian derivatives segment.
Why it matters
The clarification signals that SEBI will prioritize long-term market stability over the short-term volatility often driven by retail options trading, directly impacting how derivatives participants and brokers navigate future regulatory shifts.
Read the original report — Moneycontrol
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