India's market regulator, seeking to reduce risks for retail investors, will propose linking the amount of equity derivatives they may trade to their wealth, two people with direct knowledge of the matter said.
With Indian share prices near record highs, drawing increased retail investor interest, the regulator is concerned smaller players could suffer losses on derivatives if markets turn volatile.
The regulator is discussing measures to track and control "disproportionate trading" to safeguard retail investors by linking the value of trades in futures and options to the their income and net worth, the sources said.SEBI did not respond to an email requesting comment. Once a broker discloses an investor's net worth and income, exchanges could monitor the person's exposure to futures and options contracts across brokerage firms, the other source said.A discussion paper, the first step toward crafting regulations, will be issued soon, the sources said.
Norms for product suitability are common in many markets, mostly applying "to high-risk investments such as venture funds, hedge funds, commodity and equity derivatives", the first source said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WSJ News Exclusive | China Probed Covid-19 Policy Leaks by Ex-Government OfficialsChina’s scrutiny of the expert-network firms that investors rely on for information about the country began much earlier than is commonly thought
Read more »
Exclusive: US Coast Guard seeks bigger role to search, board vessels in PacificThe United States Coast Guard is in talks with Pacific Island countries to expand its maritime law enforcement role by allowing U.S. officers to board and search vessels suspected of illegal activity within their economic zones, officials said.
Read more »
Exclusive: Texts show lawmakers were ‘pissed off’ at Ken Paxton before impeachmentAUSTIN — Rep. Jeff Leach was “pissed off.” He had just found out that Ken Paxton wanted $3.3 million to settle a lawsuit with a group of whistleblowers who’d...
Read more »
Exclusive: UK probes Novo's Ozempic, weight-loss drug Saxenda over suicidal, self-harming thoughtsBritain is reviewing a class of drugs used in a diabetes medicine and a weight-loss treatment sold by Novo Nordisk after some patients reported suicidal or self-harming thoughts, two weeks after similar action by the European Union.
Read more »
‘The Flipping El Moussas’ Renewed for Season 2 at HGTV (EXCLUSIVE)Tarek El Moussa and Heather Rae El Moussa’s new HGTV docuseries “The Flipping El Moussas” has been renewed for a second season with an expanded 14-episode order. Per HGTV’s …
Read more »
WSJ News Exclusive | Big Automakers Plan Thousands of EV Chargers in $1 Billion U.S. PushA group of major automakers plan to collectively invest at least $1 billion in a joint-venture company that will build out electric-vehicle charging stations. The group is targeting the addition of around 30,000 fast chargers over several years.
Read more »