Mon Sep 30 17:56:27 UTC 2024: ## Sebi Board Meeting Today Could Reshape Indian Stock Market

**Mumbai, India** – The Securities and Exchange Board of India (Sebi) is set to hold a crucial board meeting today, with investors and market participants keenly watching for potential regulatory changes that could significantly impact stock market trading and investment.

**Key Agenda Items:**

* **Tighter F&O Norms:** Sebi is expected to introduce stricter regulations for Futures & Options (F&O) trading, aimed at curbing speculation and promoting more prudent retail participation. Proposed measures include limiting option contract expiries, increasing the size of option contracts, and implementing intraday monitoring of position limits.
* **New Asset Class:** The board is set to approve a new asset class that will bridge the gap between mutual funds and portfolio management services (PMS), catering to high-net-worth individuals with a minimum investment of Rs 10 lakh.
* **Mutual Fund Lite Regulations:** These regulations aim to simplify compliance for passively managed mutual fund schemes, making it easier for retail investors to diversify their portfolios with lower costs. This could potentially increase participation in the mutual fund market.
* **FII Investment Easing:** Sebi is also considering easing restrictions on Foreign Institutional Investor (FII) investments, which could boost capital inflows after recent sell-offs.

**Market Reactions:**

The Sensex and Nifty have fallen over 1% today, reflecting market anticipation ahead of the board’s decisions. While some industry experts believe the tighter F&O norms could reduce retail participation, others view it as a necessary step to protect public investors.

**Sebi’s Internal Issues:**

Beyond market regulations, the meeting will address internal issues raised by Sebi employees regarding unprofessional work culture and discrepancies in house rent allowance. This follows a recent controversy surrounding Sebi Chairperson Madhabi Puri Buch, who has been accused of conflict of interest. Buch and her husband have denied the allegations.

**Overall Impact:**

This board meeting is considered highly significant, potentially shaping the future of the Indian stock market. The proposed changes could impact investors, brokers, and the overall financial landscape, making today’s meeting a critical moment for the Indian financial sector.

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