SEBI Proposes New Market Regulations

The Securities and Exchange Board of India (SEBI) is proposing several regulatory changes to curb market volatility and enhance compliance. One key proposal aims to limit offshore derivative instruments (ODIs) to cash equity or debt to contain volatility and ensure transparency. Additionally, SEBI is planning to relax the registration and compliance requirements for Investment Advisors (IAs) and Research Analysts (RAs), including easing educational and certification prerequisites. SEBI has also intensified efforts against fraud by unregistered advisors and is implementing stricter measures for mutual funds to address insider trading. A significant focus is on the high-risk trading of index options close to expiry, which SEBI likens to gambling due to its speculative nature. These comprehensive measures reflect SEBI's commitment to a stable and transparent market environment.