SEBI suggests tighter regulations for inclusion of derivative trading on individual stocks

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From ₹3.8 to 21.68: This multibagger penny stock soared 470% in over 2 months; check hereThe markets regulator also said that it will not freeze mutual fund portfolios and demat accounts of investors who haven't submitted nominations.This decision, applicable to existing investors and unitholders, stems from feedback from market participants, emphasizing the importance of compliance ease and investor convenience. According to Sebi's circular, investors possessing securities in physical form will still be entitled to receive dividends, interest payments, or redemption payments, as well as to lodge grievances.The decision - for existing investors and unitholders - has been taken based on representations from the market participants, citing need for ease of compliance and investor convenience.

Investors holding securities in physical form shall be eligible for receipt of dividend, interest payment or redemption payment, as well as to lodge grievance, Sebi's circular said.Given this context, SEBI needs to ensure that only high-quality stocks, characterized by size, liquidity, and market depth, are available in the derivatives segment.Also read: Multibagger Stock: Torrent Power records 240% surge in 17 months, zooms 525% in 5 yearsIn line with this objective, SEBI has proposed adjustments to the existing market parameters for eligibility in the derivatives segment to align with evolving market conditions.The proposed review is based on significant growth in market indicators reflecting the size and liquidity of the cash market, such as market capitalization and turnover. The last review of eligibility criteria for stocks in the derivatives segment was conducted in 2018.Under the new proposal, for an individual stock to be