Derivatives Market
Consultation paper on futures equivalent metric likely in Feb, says SEBI Narayan
This story was originally published at 12:07 IST on 11 January 2025
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By Kshipra Petkar
MUMBAI - Securities and Exchange Board of India may come out with a consultation paper on the use of futures equivalent metric in the derivatives market by the first week of February, Whole-Time Member Ananth Narayan said on the sidelines of the Symposium of Securities Market on Saturday.
As part of this, SEBI wants to implement a better way of calculating open interest in derivatives. Earlier at the event, Narayan had said the current way of calculating open interest in derivatives market is wrong.
Currently, the open interest is calculated by adding notional open interest in options with notional open interest in futures. He said adding these two values was akin to "comparing apples and oranges" and that it doesn't have a direct correlation.
"You cannot add notional of future with notional of an option. At best you can add delta of an option with notional of a future," he said. This is something the expert committee is deliberating, he said. End
Edited by Akul Nishant Akhoury
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