Sebi board meeting: During its board meeting on June 27, the capital markets regulator Securities & Exchange Board of India (SEBI) is anticipated to address and approve regulations pertaining to investment advisors, influencers, and derivatives trading, among other things, according to a report.
The Sebi Board may tighten the requirements for equities to be traded in derivatives. Furthermore, the regulator is expected to request that brokers and mutual funds cease using unregistered financial influencers in their marketing activities in an effort to prevent market manipulation, according to Reuters, which cited persons with firsthand knowledge of the situation.
Earlier this month, Sebi released a discussion paper in which it stated that market participants should be interested in trading in stock derivatives and that they should have adequate liquidity.
Retail traders have been increasingly engaging in derivatives trading, and in FY24, the notional value of options traded in India more than doubled to $907.09 trillion from the previous year.
Meanwhile, as more and more retail investors participate in the equity markets, there are also far more influencers providing financial advice on social media sites.
To make sure unregistered influencers don’t mislead investors, Sebi has suggested that brokers and mutual funds cut ties with them.
The regulator has gathered a group of brokers, exchanges, and mutual funds this week “to suggest any additional changes needed to ensure retail investors are protected against risks in options contracts and remove the risk of manipulation,” according to a Reuters story that cited one of the sources.
The article also stated that the Sebi board is anticipated to take into account alterations and streamline the delisting procedures for firms from stock exchanges.
As per additional reports, Sebi is anticipated to sanction the use of the International Private Equity and Venture Capital Valuation Guidelines (IPEV) for securities held by alternative investment funds (AIFs) that are not listed.
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