The Securities and Exchange Board of India has unveiled new laws governing the use of derivatives by mutual funds, including an exposure limit and a ban on the selling of equity options from October 1.
In a circular, the Indian capital markets regulator published its set of principles which mutual funds would have to abide by. The new regulatory policy marks a toughening of India’s market regulation towards mutual funds, restricting their use of specific derivatives instruments, while also imposing limits for the first time. While outlining its new regulatory laws,...