• UGI USER
  • Jun 28, 2024
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SEBI’S LATEST REGULATORY MOVES

Why in the news?

SEBI , in its recent board meeting, has approved significant changes aimed at enhancing market integrity and investor protection.

Key Changes Approved:

  • Revised eligibility criteria for stocks in the derivatives segment to improve market quality.
  • Introduction of a fixed price delisting process to streamline voluntary delisting of frequently traded shares.
  • Minimum limits set for market-wide positions and quarter sigma order size to enhance market participation.
  • Sebi directs brokers and mutual funds to stop involving unregistered financial influencers.
 Source: Medium
Key Terms:

Derivatives:

Financial contracts whose value derives from the performance of underlying assets, indices, or benchmarks. They include futures, options, forwards, and swaps, used for hedging or speculation.

Futures and Options:

  • Futures: Agreements to buy or sell assets at a future date at a predetermined price, traded on exchanges.
  • Options: Contracts giving the right, but not the obligation, to buy or sell assets at a set price before expiration, offering flexibility in hedging or speculation.