Economics · Financial Markets Regulation
With reference to the Securities and Exchange Board of India's (SEBI) decision regarding equity options, which of the following best explains the regulatory rationale for gradual market expansion?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The requirement to build a robust core cash market structure first, mitigating systemic stability concerns and curbing excessive speculative activity✓
- 2The overarching focus on prioritizing agricultural and currency derivatives over financial products
- 3The objective of protecting the dominant market position of established exchanges by strategically delaying new entrants
- 4The necessity to permanently cap the number of operational equity derivative exchanges to prevent liquidity fragmentation
Correct answer
The requirement to build a robust core cash market structure first, mitigating systemic stability concerns and curbing excessive speculative activity
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