May 11, 08:00 AM

SEBI Approves Delta-Based Index Derivatives Limits, Revises Position Limits, Approves NSE Electricity Futures

India's Securities and Exchange Board (SEBI) has approved new regulations aimed at revising position limits on index options and derivatives exposure. A key SEBI panel has endorsed the adoption of delta-based limits for index derivatives, which will change how the value of options and futures outstanding is calculated and is expected to increase position limits. These changes are part of SEBI's broader effort to update derivatives exposure norms, including operational guidelines for algorithmic trading registration. Additionally, SEBI is in discussions with the mutual fund industry to provide some relief in insider trading regulations. The regulator has also granted principal approval to the National Stock Exchange (NSE) for electricity futures trading. Furthermore, the Securities Appellate Tribunal (SAT) has ruled that activities of a BSE subsidiary cannot be attributed to BSE as violations, potentially impacting regulatory accountability. These developments reflect SEBI's ongoing efforts to modernize market regulations and enhance operational frameworks for market participants.

#India #Securities and Exchange Board #SEBI #National Stock Exchange #NSE #Securities Appellate Tribunal #SAT #BSE

Written with ChatGPT (GPT-4).

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