I was alarmed by this at first, but at a second thought, it looks like SEBI is mostly worried about leverage.
If at all this goes through, I think it’d be a sensible move. By good chance or bad, the Indian Equity Investor’s accessibility to F&Os have been drastically increased, whereas the education level required to dabble in those kind of complex instruments is almost non-existent. Except at the top, maybe 25-30 education institutions in the country, the level of exposure to Derivatives-related theory and practice is extremely limited.
From a business perspective, brokers will obviously be the most hit, followed by F&O trading gurus.