NSE Chief Ashishkumar Chauhan announced that Bank Nifty weekly expiry’s discontinuation will likely reduce index option volumes, though the full impact on F&O is uncertain. From mid-November, weekly derivatives for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services will end.
Regarding NSE’s IPO, Chauhan noted no update, as SEBI’s “no-objection” is still pending. NSE also plans to divest a major stake in NSDL via an IPO to comply with regulatory requirements.
SEBI has mandated separate disclosures for expenses, half-yearly returns, and annualised yields in direct and regular mutual fund plans, effective December 5, aiming to enhance investor clarity and protection. A new color-coded risk-o-meter will also visually represent risk levels, from “low risk” in green to “very high risk” in red.
KV Kamath praised fintechs for driving innovation in India’s financial services, especially with the transformation in payments led by UPI. He noted that while banks have been slower to adopt new technology, they can learn from fintechs’ agility. Kamath acknowledged fintechs’ edge in innovation, though he cautioned about the importance of staying within operational boundaries in financial services.
SEBI proposed easing the “skin-in-the-game” rule for AMC employees by reducing the mandatory 20% investment requirement for those with less than 20% of their pay in non-cash form. This aims to address concerns about deferred compensation and financial burdens from ESOPs. The proposal suggests varying requirements based on employees’ gross CTC.
Despite high cash circulation, India’s ATM numbers are declining, dropping to 215,000 in September 2024 from 219,000 a year earlier, mainly in off-site locations. This shift reflects banks’ focus on digital payments and UPI, with fewer new ATMs and a surge in micro-ATMs, which rose 18% in two years. Regulatory caps, low ATM profitability, and increased QR code adoption further contribute to the decline.
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