SEBI chief reframes derivatives debate with surgical precision. Tuhin Kanta Pandey distinguishes futures from options, arguing they serve fundamentally different economic functions. While futures and long-dated options provide critical price discovery and hedging mechanisms essential to market infrastructure, the real concern lies elsewhere. Short-dated options approaching expiry present the genuine risk to retail investors through extreme leverage, minimal premiums, and psychological pressure toward speculation. SEBI data reveals ninety-two percent of individual equity derivatives traders incur losses, concentrated in expiry-day punting. Rather than blanket restrictions, the regulator emphasizes targeted intervention in speculative pockets while preserving legitimate hedging instruments that function as intended within the broader market ecosystem.
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