India has become an integral part of the global capital markets, forming a key part of the emerging markets portfolio for large investors. Domestic investors have benefited as the incoming tide of foreign capital flows has swelled investor wealth, over a longer period of time. While foreign investors can hedge their bets across the world, it was not as easy for domestic investors to do so. Increasingly, domestic investors will feel the need to hedge against an unfavourable movement in domestic markets. Continue Reading →
Sebi has issued a draft report (they have called it a note) on new products to be launched in the derivatives’ segment. The idea is to make the segment more popular, something it has already become as seen by the vast difference in trading volumes in the cash and derivative markets.The note is based on the recommendations of the Committee on Derivatives Market Review led by Prof. M. Rammohan Rao.
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Sebi issued this clarification today. "Clarifications have been sought on para 1 of the Proposed Measures in the draft discussion paper on Overseas Derivatives Instruments (ODIs), with Indian Exchange Traded Derivatives as underlying. With regard to the above, it is made clear that there is no proposed bar on ODI contracts, expiring this month or in the following months, being renewed, provided the renewal does not go beyond 18 months.