Plans for tighter derivatives rules to quell frenzy

The new rules directly impact about 35% of futures and options premiums, Jefferies Financial Group Inc analysts said. — Reuters

New Delhi: India’s securities regulator are proposing measures to curb speculation in equity futures and options, a step it says is needed after the explosive growth in derivatives trading in the country.

On Tuesday, the Securities and Exchange Board of India (Sebi) laid out a series of steps including raising the minimum contract size of index derivatives, limiting weekly options to a single benchmark of an exchange, collecting options premium upfront and reducing the number of strike prices.