SEBI nod for equity derivatives trading to stock exchanges operating in IFSCs

The capital markets watchdog SEBI today informed that stock exchanges operating in international financial services centre (IFSCs) may permit trading in equity derivatives after obtaining prior approval from SEBI.

Apart from foreign portfolio investors (FPIs) registered with SEBI, other entities operating in IFSCs will be eligible to trade in equity derivatives. The decision was taken based on the recommendations of SEBI’s risk management review committee.

SEBI has also informed that the market-wide position limit for derivatives on equity shares will be equal to 10 per cent of the number of shares held by non-promoters in the relevant underlying security.