Sebi discontinues mini derivatives contracts to save investors

Comments 0
SummarySebi today said it has decided to discontinue mini derivatives contracts on Sensex and Nifty.

Market regulator Sebi today said it has decided to discontinue mini derivatives contracts on Sensex and Nifty indices, to discourage small investors from getting attracted to this segment.

The latest move revises Securities and Exchange Board of India's decision in December 2007 that allowed mini derivative contracts. Such contracts -- having a minimum size of Rs 1 lakh -- were allowed on leading indices, Sensex and Nifty.

"With a view to ensure that small/retail investors are not attracted towards derivatives segment, it has now been decided to discontinue mini derivatives contracts on Index (Sensex and Nifty)," Sebi said in a circular today.

Directing stock exchanges to implement the latest circular, Sebi said that no fresh mini derivatives contracts shall be issued.

"However, the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months," the regulator noted.

Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.

Ads by Google

More from Business

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...