Mumbai: India’s stock market regulator Securities and Exchange Board of India, or Sebi, on Tuesday said it had decided to discontinue trading in mini derivative contracts on the Sensex and Nifty indices in order to ensure that small and retail investors are not attracted towards the derivatives segment.

Sebi had permitted exchanges to introduce mini derivative contracts on indices with a minimum contract value of 1 lakh in December 2007.

“Exchanges are directed to take necessary action to give effect to this circular. No fresh mini derivatives contracts shall be issued. However, the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months," Sebi said in a circular.

My Reads Logout