SEBI Proposes New Measures for Risk Monitoring and F&O Ban Reduction to Prevent Stock Manipulation

The Securities and Exchange Board of India (SEBI) has released a consultation paper focusing on risk monitoring in equity derivatives, aiming to tighten scrutiny on stock market practices. This initiative includes measures to reduce the number of stocks entering the ban under the Futures and Options (F&O) segment. SEBI's proposed changes also involve new criteria for diversifying non-benchmark indices and a method to prevent stock manipulation in the derivatives market. The consultation paper emphasizes the need for improved disclosure, valuation, and compliance among Financial Market Entities (FMEs). These developments are part of SEBI's broader strategy to enhance market integrity and transparency.