“At this second, we’re not considering any measures, and no matter framework that we now have put in place, that may proceed,” Pandey stated. “After we as a regulator take a look at spinoff markets, we achieve this in a really methodical method based mostly on knowledge.”
The federal government raised transaction taxes on equity derivatives within the Union Funds to curb speculative buying and selling. India’s futures and choices volumes are greater than 500 instances the nation’s GDP, underscoring the necessity for arate adjustment to rein in extreme exercise, it stated.
Individually, on the US-India commerce deal, he stated it could assist get extra investments into the nation.
“Basically, when you’ve got an overhang of a regulatory motion which is eliminated, and commerce frictions eliminated, capital formation is all the time accelerated,” Pandey stated. He added that the elimination of the uncertainties can spur funding selections and get a higher predictability on capital. “So general within the state of affairs I might say that with the offers which were achieved on the commerce facet, loads of uncertainties have been eliminated,” he stated.
Algo Trades might Quickly Not Face OTR Penalties
The Securities and Alternate Board of India (Sebi) on Wednesday proposed adjustments to its order-to-trade ratio (OTR) framework for equity choices, to exempt algorithmic orders positioned by market makers from OTR penalties.
Underneath the revised framework, for equity possibility contracts, orders positioned inside a variety of 40% above or beneath the final traded worth (premium) “or ± ₹20, whichever is greater, shall be exempted from the framework for imposing penalty for top OTR,” the regulator stated in a round.At current, inventory exchanges place financial disincentive for top order-to-trade ratio of algorithmic orders positioned by stockbrokers. Additional, algorithmic orders positioned by designated market makers for market making exercise wouldn’t be thought-about in the direction of computation of OTR, Sebi stated. “Orders positioned throughout the vary of ±0.75% of the LTP shall be exempted from the framework for imposing penalty for top OTR,” it stated
No Contemporary Curbs on Equity Derivatives
Pandey was talking on the launch of a corporate-bond outreach occasion, the place he famous that measures are being thought-about to deepen the bond market. Sebi will have interaction with market members on implementing the Funds proposals associated to company bonds, he stated.
The current Funds has proposed a collection of reforms geared toward bettering liquidity within the secondary market.
“A market-making framework will help steady twoway quotes, cut back bid-ask spreads, and enhance worth discovery, thereby making company bonds a extra dependable asset class for buyers,” Pandey stated. “Derivatives on corporate-bond indices and total-return swaps will assist buyers in environment friendly danger administration. As secondary-market liquidity improves and investor base widens, the corporate-bond markets will turn out to be a extra dependable and cheaper funding route for issuers.”
In FY25, issuers raised about ₹10 lakh crore by way of debt issuances. Excellent company bonds have grown at roughly 12% CAGR, rising from ₹17.5 lakh crore in FY15 to ₹58 lakh crore by end-December 2025, in accordance to Sebi knowledge.
Pandey famous that the market stays closely skewed in the direction of extremely rated issuers, who account for 90% of all bond issuances. Almost 60% of funds are raised by monetary establishments, limiting sectoral variety.
“This focus limits the selection obtainable to buyers and restricts honest worth discovery throughout completely different sectors of the economic system. The secondary market stays shallow as a result of institutional buyers comply with a ‘buy-andhold’ strategy fairly than energetic buying and selling,” he stated.
That is additional compounded by the dominance of personal placements, which may cut back transparency and make it tougher for smaller issuers to entry the market, he added.
Greater than 5,600 firms are listed within the equity market, however solely about 770 entities have raised funds by way of the debt market. Of those, 272 have tapped the market a number of instances, whereas many have issued debt solely a couple of times, Sebi knowledge confirmed.
He additionally stated a Sebi survey confirmed that extra Indians learn about crypto currencies than about bonds.
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