NSE CEO Proposes Minimum Eligibility Criteria for Derivatives Trading to Curb Speculation

NSE CEO Ashishkumar Chauhan proposed implementing minimum qualifying criteria for derivatives trading in India, similar to regulations in the US and Singapore, to prevent lower-income individuals from incurring losses through speculation. Citing SEBI data showing over 90% of derivatives traders lose money, Chauhan emphasized the need for such measures alongside existing government efforts like increased securities transaction tax to curb retail speculation. He noted derivatives markets remain vital for capital formation but called for continued regulatory oversight to limit excessive speculative participation.