PTI New Delhi

The Securities and Exchange Board of India (SEBI) is actively working on refining rules related to the derivatives market, with a focus on protecting retail investors while ensuring that market activity is not affected, its Chairman Tuhin Kanta Pandey said on Wednesday.

Pandey clarified that SEBI is not trying to clamp down on the futures and options market but is adopting a balanced approach. While discussing the regulator's recent proposals to NDTV Profit, he said the goal is to improve the market's structure and reduce unnecessary risks for small investors.

"We are continuously reviewing the market, gathering feedback, and we are ready to make adjustments where necessary," Pandey said. The market regulator had earlier issued a consultation paper on proposed futures and options reforms, and according to Pandey, the regulator has received over 800 public comments.

CSCRF: Sebi categorises entities based on size and risk level basis

Sebi on Wednesday grouped qualified registered entities into four categories based on size and risk level under the cybersecurity and cyber resilience framework (CSCRF). Sebi introduced CSCRF in August 2024 to strengthen cybersecurity in financial market entities. Since then, many entities asked for clarifications and time extensions.

Accordingly, Sebi, in its circular, provided further clarity and updates on entity categorisation, exemptions and implementation deadlines. Sebi mulls mandatory demat account for select existing shareholders before IPO Sebi on Wednesday proposed mandating select shareholders, including directors, key managerial personnel and current employees, to hold shares in demat form before filing an IPO document.

These measures, if implemented, will help eliminate inefficiencies and risks associated with physical share certificates, including loss, theft, forgery, and delays in transfer and settlement. Presently, ICDR regulations mandate that all specified securities held by promoters must be in dematerialised form before the filing of the offer document.