The pronounced stock market volatility has jolted SEBI into action. It plans to review the risk management framework for derivatives.
Safeguards on anvil
Analysts feel it will be timely as retail investors have booked heavy losses in F&O recently. Says Arun Kejriwal, Director, KRIS: “There is a need for SEBI to tighen the eligibility criteria for stocks to enter the F&O segment. Additionally, SEBI should scrap the mini-contract, thus, restricting the entry of small retail investors into the market.”
— Manu Kaushik