Sebi, at its New Delhi board meeting held on February 17, 2007, decided to constitute a small committee of experts to study the various aspects of the derivatives market. The committee has been given the mandate to suggest the changes and identify new products to be introduced in the segment. The Sebi panel has been asked to submit its report within two months of its formation and is expected to submit its report by May this year.
There is a mammoth task before the derivatives panel as after the last advisory committee on derivatives headed by JR Varma, former board member, Sebi, was dissolved in 2003-04, there was no standing panel on the subject, which could advise Sebi on a regular basis on how to go about and make changes in the segment.
Since then, the derivatives segment in the Indian capital market has grown by leaps and bounds and the Indian futures and options market has become the largest market in single stock futures.
The derivatives segment of National Stock Exchange (NSE) offers futures trading in as many as 159 individual stocks and also offers options based on Nifty index.