The Securities and Exchange Board of India (Sebi) is examining whether investors are knowledgeable and capable enough to bear the risks posed by derivative instruments.
Judging from the manner in which brokerages are adopting technology, the ubiquitous smartphone may seem instrumental in turning more people into savvy stock investors. More investors and traders are now punching in buy and sell orders into the 5-inch screen than ever before, thanks to the technological revolution, and, of course, faster mobile networks.
Lured by a sharp rally in the benchmark sensitive index (Sensex), a large number of traders have squared off their position in the commodity market and invested their earnings in shares to take a pie of growing equity markets. Consequently, the volume and turnover in commodity futures exchanges declined sharply over the last one year with a proportionate gain in equity markets.
A cheap and easy source of funding for retail brokerages is set to dry up soon. Brokerages will not be allowed to use the money of clients to finance other trades from July 1, possibly triggering a sell-off in small-cap and penny stocks at that time.