Capital market regulator SEBI is seeking major changes to the structure of equity trading in India, evidently driven by the government’s recent realisation that it may be losing chunks of tax revenues due to a high concentration of equity trading volumes in the derivative segment. Alarming rise SEBI may soon announce measures to boost cash equity volumes and curb excessive derivative speculation, two sources close to the regulator told BusinessLine . India’s emergence as the second-most speculative equity market globally — due to derivative trading — after South Korea, has rattled the government and SEBI. A recent study showed that the ratio of equity derivative turnover to cash segment turnover stood at 15.2:1. That is, more than 15 trades in derivatives were being conducted for every cash market trade. Sources say the fact that derivative trading was way higher than cash was causing heartburn in the Prime Minister’s Office and the Finance Ministry as the government deriv
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