Sebi panel moots mini F&O contracts for small investor

Sebi panel moots mini F&O contracts for small investor

Sebi’s Derivatives Market Review Committee has recommended the introduction of mini contracts in equity indices, options with longer tenures, a volatility index and exchange-traded currency contracts.

The mini proposed by the committee will be a fraction of the normal derivative contract, and would be affordable for individual investors who want to hedge their positions in the market.

The committee has also proposed long-term option contracts with maturity of up to five years. Currently, option contracts in India carry a three-month maturity cycle.

Click here to view the interim recommendations of the committee headed by Prof M. Rammohan Rao.

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