In November 2024, SEBI implemented six out of seven measures recommended by an expert panel to regulate which segment of the financial market?

Correct option is A

The correct answer is: (a) Derivatives Market

Explanation:
• The Securities and Exchange Board of India (SEBI) implemented six out of seven measures in November 2024 aimed at regulating the futures and options (F&O) segment, which is part of the derivatives market.
• The measures included increasing contract size, limiting weekly expiries, upfront collection of option premiums, and intraday monitoring of position limits in index derivatives.
• These changes clearly target the derivatives market rather than pure equity, forex or debt markets.

Information Booster:
• The index-derivatives segment in India had grown rapidly, with large volumes and retail participation, raising investor protection concerns.
• The measures are phased: e.g., new minimum contract size effective from 20 November 2024.

• SEBI constituted an Expert Working Group on derivatives to recommend these reforms.
• One of the objectives: reduce speculative risk and protect household savings from high-loss trades in F&O.

Additional Knowledge:
• Equity Market (b) refers to shares/stocks of companies; this regulation was about derivatives, not primary equity trading.
• Forex Market (c) deals with currency trading; the measures were for equity index derivatives, not forex.
• Debt Market (d) involves bonds/securities; this regulation did not target debt instruments.