A top panel of India's market regulator is meeting on Tuesday to consider placing stricter limits on positions in index derivatives in the Indian markets, two sources with direct knowledge of the matter said.
The Securities and Exchange Board of India (SEBI) is looking at the rules on equity derivatives after the regulator temporarily banned U.S. high frequency trading firm Jane Street from the Indian markets saying some of its trading strategies were manipulative and left retail investors with losses.
SEBI's secondary market advisory committee, tasked with framing equity market policies, will discuss and make recommendations on intraday limits for index derivatives to prevent large traders and trading firms from accumulating significant exposures, the sources said.
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