Mumbai: The Securities and Exchange Board of India (Sebi) is examining whether investors are knowledgeable and capable enough to bear the risks posed by derivative instruments. In a discussion paper released on Wednesday, Sebi said it is considering a product suitability framework to ensure that individual investors have a safety net. In India, trading members (brokers) need to employ salespeople who have passed a certification programme approved by Sebi to operate in the derivatives market. Sebi data shows options dominate trading in the derivatives and account for 83.61% of total trading in derivative segment. Proprietary trades and individual investors contribute 43% and 26% respectively of the total volume of equity derivatives in India.

Source: Mint July 13, 2017 02:26 UTC