A few weeks ago, the Securities and Exchange Board of India (SEBI) issued a circular in which it mentioned that, over a period of time, the derivative segment of the Indian stock market would be required to do physical settlement. This means that the volumes in the derivative segment would come down. Also, the SEBI asked the exchanges to increase the margins, which are paid by traders to exchange, before they can take exposure to any derivative trade, so that excessive speculation by paying a small amount of margin money is curbed. To make a further dent on speculative activity in the markets, the SEBI asked brokers to collect income tax returns (ITR) of investors who trade in derivative market so that it can judge whether an individual trader has the financial strength to deal with derivative instruments or not.
http://www.gfilesindia.com/one-step-forward-two-steps-backwards/
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