News India Live, Digital Desk: Sebi index: Capital market regulator, Securities and Exchange Board of India (SEBI), index options are likely to reduce the proposed sanctions on trade, it is likely to implement a lot more limit for net and gross status limitations, a report of NDTV profit on Sunday stated to cite people aware of the case.
SEBI is probably “bending to allow a net limit of Rs 1,500 crore for index options and a gross range of Rs 10,000 crore (each side) at the end of the day”. The report said, “As per the previous proposal of the regulator, the net limit was only Rs 500 crore at the end of the day and the gross limit was Rs 1,500 crore.”
According to the report, if the risk of a merchant crosses the fixed limit, the regulator will examine the potential concentration or manipulation. The regulator is also moving towards delta-based open interest metric rather than traditional imaginary method.
This approach takes into account the actual economic risk of option trades and not their imaginary shape, which can be misleading. Last week, SEBI introduced strict rules to improve administration in major market infrastructure institutions (MII), such as Stock Exchange, Clearing Corporation and Depository.
SEBI has made it mandatory for some directors to follow the cooling-off period before joining a competitive institution. “Provided that the non-independent Director in the Governing Board of Depository can be appointed only after a cooling-off period in a recognized stock exchange or recognized stock exchange or recognized clearing corporation or any other depository with prior acceptance of the board, as specified by the governing board of such depository,” it is said.
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