Stock exchanges and brokers, catering to retail traders, could be hit hard by the regulator Sebi’s proposed measures for Futures & Options (F&O) trading regulations, with market volumes slumping 30-40 per cent, according to reports.
If these measures are implemented, the number of investors could decrease, it added.
Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers.
Sebi, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin.
Sebi stated that these measures are aimed at enhancing investor protection and promote market stability in derivative markets.
According to a report by Jefferies, Sebi’s proposed measures to reduce the number of .
Posts in category Business Standard
Sebi-proposed F&O trading regulations to hit exchanges, brokers: Reports (11-08-2024)
Focused MFs’ asset base rises 31% to Rs 1.43 trillion in April-June qtr (11-08-2024)
Focused mutual funds, which invest in a concentrated portfolio of stocks, are gaining traction among investors with the asset base of the category growing to Rs 1.43 lakh crore in three months ended June 2024, marking an increase of 31 per cent from a year ago.
Interestingly, some of the focused funds offered by the mutual fund houses such as Invesco India Focused Fund, Mahindra Manulife Focused Fund, JM Focused Fund and HDFC Focused 30 Fund delivered a remarkable return of 40-60 per cent in the past year, industry data showed.
Focused funds are a type of mutual fund where the fund manager selects a concentrated portfolio of stocks, typically limited to a maximum of 30 due to regulatory constraints.
This requires the fund manager to be highly skilled in stock selection, as they need to identify the best investment opportunities across the market without bias toward any specific market cap or sector.
According to data with the Association of Mutual Funds in India (Amfi), the assets
Sebi vs Hindenburg: The fight has moved away from Adani, the initial target (11-08-2024)
The Sebi chief has ‘strongly’ denied Hindenburg’s fresh allegations terming it ‘baseless insinuations’ which is ‘devoid of any truth’
Who is Dhaval Buch? Sebi chief’s husband named in Hindenburg report (11-08-2024)
US short-seller alleged that Dhaval and Madhabi Buch had stakes in offshore funds, which were used to inflate stocks of Adani Group
FPIs turn net sellers, withdraw Rs 13,400 cr from equities so far in Aug (11-08-2024)
After infusing money during the last two months, foreign investors have turned net sellers as they pulled out over Rs 13,400 crore from Indian equities in August so far due to unwinding of the yen carry trade and recession fears in the US.
So far this year, FPIs have made a net investment of Rs 22,134 crore in equities, data with the depositories showed.
Going forward, if the market continues to rise, FPIs are likely to press more sales since Indian stock valuations continue to remain elevated, particularly in relation to valuations in other markets, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
According to the data, Foreign Portfolio Investors (FPIs) withdrew a net amount of Rs 13,431 crore from equities so far this month (August 1-9).
This came following an inflow of Rs 32,365 crore in July on expectation of sustained economic growth, continued reforms and better-than-expected earnings season, and Rs 26,565 crore in June driven by political …
Mcap of 8 of top-10 valued firms erodes by Rs 1.66 trn; Reliance, LIC lag (11-08-2024)
The combined market valuation of eight of the top-10 most valued firms eroded by Rs 1,66,954.07 crore last week, with Reliance Industries and Life Insurance Corporation of India emerging as the biggest laggards, in line with weak trend in equities.
Last week, the BSE benchmark slumped 1,276.04 points or 1.57 per cent.
The market capitalisation (mcap) of Reliance Industries tanked Rs 33,930.56 crore to Rs 19,94,765.01 crore, the most among the top-10 firms.
The valuation of Life Insurance Corporation of India (LIC) slumped Rs 30,676.24 crore to Rs 7,17,001.74 crore.
State Bank of India lost Rs 21,151.33 crore from its valuation which stood at Rs 7,35,566.52 crore.
The market valuation of Infosys dived Rs 20,973.19 crore to Rs 7,35,277.28 crore and that of Tata Consultancy Services (TCS) tumbled Rs 19,157.77 crore to Rs 15,30,469.11 crore.
Bharti Airtel’s mcap got wiped out by Rs 16,993.56 crore to Rs 8,33,396.32 crore and ICICI Bank suffered an erosion of Rs 16,975.55 crore to Rs
Sebi’s Buch in Hindenburg’s firing line: How will markets react on Monday? (11-08-2024)
Analysts believe that these statements are mere allegations, which, at best, can trigger a knee-jerk reaction in the markets when they open for trade on Monday
Macroeconomic data, Q1 earnings to drive mkt sentiments this week: Analysts (11-08-2024)
Macroeconomic data announcements, the last batch of Q1 earnings and global trends are the major factors that would influence trading sentiments in the equity market in a holiday-shortened week ahead, analysts said.
Besides, trading activity of foreign investors would also be a crucial factor in dictating movement in the market.
Equity markets would remain closed on Thursday for Independence Day.
“This week, all focus will be on the global markets as we can see the extension of weakness after a long period of stability. The Indian equity market could also witness some bit of levelling off this week as investors process recent gains and contend with high prices. Geopolitical tensions are also escalating, but markets are not reacting significantly, which is reflected in the declining crude oil prices,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
On the domestic front, the last batch of Q1 earnings will drive stock-specific movements. Hero MotoCorp, Hindalco a
Eliminate conflicts of interest in Sebi’s probe of Adani Group: Congress (11-08-2024)
In the wake of the US short-seller Hindenburg Research levelling allegations against Sebi chairperson Madhabi Buch, the Congress on Saturday demanded the Centre act immediately to eliminate all conflicts of interest in the regulator’s investigation of the Adani Group.
The opposition party also said the “seeming complicity of the highest officials of the land” can only be resolved by setting up a Joint Parliamentary Committee to investigate the full scope of the “scam”.
The Hindenburg Research on Saturday launched a fresh broadside against market regulator Sebi chairperson Madhabi Buch, alleging she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.
In a blogpost, Hindenburg said 18 months since its damning report on Adani, “SEBI has shown a surprising lack of interest in Adani’s alleged undisclosed web of Mauritius and offshore shell entities.”
No immediate comments were available from Securities and Exchange Board of India, whose X acco
Sebi chair had stake in offshore entities used in Adani scandal: Hindenburg (10-08-2024)
Short-seller says whistleblower documents have revealed Sebi Chairperson Madhabi Puri Buch had stake in obscure offshore entities used in Adani money siphoning scandal; Buch terms allegations baseless