SEBI has formed a 15-member working group led by former RBI Executive Director G Padmanabhan to enhance investor protection and improve risk management in equity derivatives. This group includes representatives from exchanges, brokers, clearing corporations, mutual funds, a major corporate house, and academic experts.
Their goal is to propose measures to enhance investor protection in exchange-traded derivatives (ETDs) and improve risk metrics and architecture. The initiative comes amid rising concerns about the surge in retail participation in derivatives trading in India, which has led to fears of significant financial losses for these traders in the event of a market crash.
SEBI’s experiment with a same-day settlement cycle (T+0) has seen limited adoption during its soft launch for 25 stocks, with minimal trading activity on the NSE and BSE. Since its introduction in March, the T+0 cycle has logged a turnover of just Rs 5.7 lakh on the NSE and under Rs 3 lakh on the BSE.
The low uptake is attributed to the recent rollout of the T+1 cycle and operational challenges faced by brokers. Despite the benefits of faster capital release and enhanced risk management, brokers are yet to fully implement the T+0 option due to technological and client management issues. SEBI plans to launch a revised framework in November to encourage wider adoption.
RBI Governor Shaktikanta Das emphasized the importance of maintaining price stability to ensure sustainable economic growth, warning that a single serious weather event could push inflation above 5%.
Das stressed that the RBI’s mandate is to achieve a 4% consumer price inflation target, with a 2% leeway. Despite inflation moderating to 4.7%, Das highlighted the risks and the need for cautious monetary policy to prevent economic disruptions. He noted that India’s growth outlook is optimistic, with a forecast of 7.2% GDP growth for the current year, and underscored that stable inflation is crucial for long-term growth.
Walmart CFO John David Rainey announced that Flipkart and PhonePe are on their path to profitability. This progress is expected to influence the timing of Flipkart’s initial public offering (IPO).
Flipkart saw double-digit growth for the quarter ending April 30 and recently closed a $1 billion funding round, including $350 million from Google, at a $35-36 billion valuation. The company is expanding its delivery services and launching a quick-commerce service next month. PhonePe, another Walmart-owned entity, is handling approximately $1.5 trillion in annual payment volume.
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