Regulations
SEBI discontinues mini derivatives contracts on Sensex, Nifty

SEBI decided to discontinue mini derivatives contracts on Sensex and Nifty to deter small investors from this segment


Mumbai: Market regulator Securities and Exchange Board of India (SEBI) said it has decided to discontinue mini derivatives contracts on Sensex and Nifty indices, to discourage small investors from getting attracted to this segment, reports PTI.

 

The latest move revises SEBI's decision in December 2007 that allowed mini derivative contracts. Such contracts -- having a minimum size of Rs1 lakh -- were allowed on leading indices, Sensex and Nifty.

 

"With a view to ensure that small/retail investors are not attracted towards derivatives segment, it has now been decided to discontinue mini derivatives contracts on Index (Sensex and Nifty)," SEBI said in a circular.

 

Directing stock exchanges to implement the latest circular, SEBI said that no fresh mini derivatives contracts shall be issued.

 

"However, the existing unexpired contracts may be permitted to trade till expiry and new strikes may also be introduced in the existing contract months," the regulator noted.

 

Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.

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COMMENTS

NSriramamurty

5 years ago

Banning Mini Contracts Trading By Small Investiors is Most Foolish Decision of SEBI. Gold,Silver,etc Mini Cintracts Exist in MCX ,which are traded by all Small Investors, Comfortably without any Problem.Seasoned Traders of Stock Market are literally ADDICTED to Trade ,utilising their Vast Experince.As Income Goes down after Retirement,Enlarged Family Expenses,etc-Option Left to them is Only to Trade Mini Contracts.SEBI Butches them out from Market now,insted of helping them to TRADE.-- SEBI Miserably Failed in its Duty To Protect Small Traders,while ,on the other Hand, Inviting Small Traders to Stock Market-Including Finance Ministers . SEBI is Helping Monied People,who are Looting Small Traders Money by Umteen Manipulations.Failing to Curb Manipulations,which is SEBI's Basic Duty,it helped them by avoiding Small Traders ,who usually Cry Foul for ManiPulations.
---SEBI should Change Minimum Contract Value from Rs. TWO Lakhs existing now To Rs. ONE Lakh,so that all can Trade and Moneyed People can Trade More than One Contract i.e. Many Contracts with their Money.

gaurang patel

5 years ago

all this is done to prevent small traders who are earning from trading mini-nifty to go away.This move of sebi is to help brokers gain volume as now small traders will trade in big nifty then mini. If SEBI is really concerned about small traders then it should force all stock brokers who give 10-20 times margin exposure to small traders to stop doing that. Just google the term "mini nifty cycle" & know by yourself how small trading can work wonders in any kind of market.

SEBI slaps Rs5 lakh penalty on Lohia Polyesters

SEBI slapped a fine of Rs4.50 lakh on Lohia Polyesters for failing to redress investor complaints and  imposed penalty of Rs50,000 on the company for failing to submit certain information on SCORES

Mumbai: The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on Lohia Polyesters for failing to resolve investor complaints and for not furnishing required details to the market regulator, reports PTI.

 

In its order, SEBI slapped a fine of Rs4.50 lakh on Lohia Polyesters for failing to redress investor complaints.

 

Besides, the market regulator imposed penalty of Rs50,000 on the company for failing to submit certain information including document of authentication required under SEBI's online complaint redressal system SCORES.

 

The regulator said it is "established beyond doubt that the noticee (Lohia Polyesters) has not redressed the long pending investor grievances and failed to submit the ATR (Action Taken Report) and letters from BSE and stock exchanges as advised by SEBI".

 

According to the order, the company also failed to submit the required authentication under SCORES (SEBI Complaints Redress System) before the initiation of adjudication proceeding.

 

Certain investor grievances were pending against the company as on 22 December 2011, SEBI said.

 

Lohia Polyesters was advised by SEBI to submit letters from BSE and other stock exchanges on which it was listed, stating the status of investor grievances.

 

However, the order said the company did not redress the investor grievances, failed to submit the ATR and letters from the stock exchanges.

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Delhi HC dismisses DLF plea against SEBI probe

Sinha, a businessman from Delhi had alleged that DLF and its directors and agents had lured and compelled him to transfer certain plots of land and did not fulfil the promise of developing the land and providing him higher returns

New Delhi: The Delhi High Court has dismissed realty major DLF Ltd's plea against market regulator Securities and Exchange Board of India (SEBI)'s decision to probe an allegation that the realty company had duped a businessman of Rs34 crore, reports PTI.

 

A bench headed by Justice S Ravindra Bhat dismissed DLF's plea, upholding a single-judge bench order of the court which had also imposed a cost of Rs2 lakh on it.

 

DLF had earlier moved the single judge-bench to quash SEBI's order dated 20 October 2011 to probe into city-based businessman Kimsuk Krishna Sinha's allegation of 2007 against real-estate company and its associate firm Sudipti Estates.

 

DLF had said SEBI's order was passed "erroneously and in blatant violation of the principle of natural justice."

 

The single judge on 3rd January this year had dismissed DLF's plea against the market regulator's decision saying SEBI's order was "based on reasons."

 

SEBI had passed the order following a 2011 direction of the high court to it to look into Sinha's complaint against DLF Group and Sudipti Estates.

 

Sinha had alleged that DLF and its directors/ agents had "lured and compelled" him to transfer certain plots of land and did not fulfil the promise of developing the land and providing him higher returns.

 

Sinha had alleged Sudipti, DLF Home Developers Ltd and DLF Estate Developers Ltd were sister concerns inextricably linked and were part of the DLF group.

 

DLF has, however, said that Sudipti is a separate legal entity owned and controlled by different individuals.

 

The construction major in a Draft Red Herring Prospectus (DRHP), filed for a public issue in May 2006, had mentioned that Sudipti was its associate company.

 

The DRHP, however, had been withdrawn and a fresh prospectus was filed in January 2007 in which Sudipti was not mentioned as an associate.

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