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Finance Minister Nirmala Sitharaman has said something very important regarding future and options trading. His statement is expected to provide considerable relief to investors trading in the derivatives market. He says that the government is trying to remove obstacles related to F&O trading.
New Delhi. The government does not want to stop futures and options (F&O) trading. This is what the country’s Finance Minister Nirmala Sitharaman has to say. He has said that the Center wants to remove the obstacles that investors are facing. The Union Minister said these things in the 12th SBI Banking and Economic Conclave. Earlier this year, there were reports that the government wanted to increase the volume in the cash market and was trying to reduce the sharp fluctuations caused by weekly expiry. Nirmala Sitharaman has said that investors have to understand the risks associated with F&O.
Recently, SEBI chief Tuhin Kant Pandey had said, “We cannot stop weekly expiry completely, many people are involved in it.” He had said in the BFSI Summit that weekly expiry of F&O is a very sensitive matter and there are many aspects to it. According to Pandey, there are some problems in the derivatives market and these have also been highlighted by SEBI.
It is necessary to control over-enthusiastic investors
Pandey had also said that it is important to keep small or less experienced investors under control when they trade too enthusiastically in the market without thinking. However, Pandey is not in favor of stopping weekly expiry. He said that weekly expiry cannot be stopped just like that, SEBI will analyze the data on this and take a decision.
need for world class banks
Apart from talking about the stock market, Nirmala Sitharaman stressed the need for world class banks in India. According to the Finance Minister, work is also being done in this direction and the government has started talks with RBI. He also said that banks will have to work on increasing cash flow in the market. The Finance Minister is confident that the increased demand due to cut in GST rates will give rise to a positive investment cycle. He reminded that as part of the privatization drive, the government had sold its 51 percent stake in IDBI Bank to Life Insurance Corporation of India (LIC) in January 2019.
