0:03

Hello and welcome to The Print Pod,

0:05

our daily podcast on the important news

0:07

of the day. My name is Amancha

0:09

and I am going to tell you

0:11

about TCA Sharad Raghavan's report on the

0:13

new SEBI proposals on how tightening the

0:15

futures and options norms will

0:17

strengthen the market and protect

0:19

investors. The Securities and

0:21

Exchange Board of India proposal to

0:23

tighten the criteria for underlying stocks

0:25

to be eligible for trading in

0:28

the futures and options market

0:30

aims to strengthen the market and

0:33

protect investors. The SEBI released a

0:35

consultation paper on Saturday detailing

0:38

its proposal for the eligibility

0:40

norms for stock trading and

0:42

requesting stakeholders to comment by

0:44

19th June. Not all stocks

0:46

in the stock market are

0:48

eligible for trading in the

0:50

FNO market. They need to

0:52

pass some eligibility norms, which

0:54

were last reviewed in 2018.

0:56

Their revision is now

0:58

necessary again, according to

1:00

SEBI. This is because India's stock

1:02

and derivatives market, comprising futures

1:05

and options, have grown

1:07

considerably since the last review. Since

1:09

then, market parameters reflecting the size

1:12

and liquidity of the cash market

1:14

with market capitalization and turnover

1:17

have moved up considerably. According

1:19

to SEBI data, India's

1:22

benchmark stock indices, the NIFTY50

1:25

and the SENSEX have grown 110% and 109% respectively

1:27

between May 2018 and May 2024. India's market capitalization,

1:37

a measure of the value of

1:40

all the stocks available for trading

1:42

in the stock market grew

1:44

178% over this period. The print reported

1:46

last month how India now accounts for

1:49

nearly 90% of

1:51

volume of all options contracts traded

1:53

globally. This share was just 37%

1:55

in 2019, highlighting the spectacular