The Securities and Exchange Board of India (SEBI) announced a comprehensive plan this week to consolidate and streamline its regulatory framework for derivatives, aiming to simplify operations for market infrastructure institutions across the country. By proposing the merger and pruning of extensive master circulars governing equity, currency, interest rate, and commodity derivatives, the regulator intends to foster an environment conducive to ease of doing business. This initiative, detailed in a recent consultation paper, marks a significant shift toward reducing administrative burdens for exchanges and clearing corporations.
Context of Regulatory Consolidation
For years, market participants have navigated a labyrinth of circulars issued over decades, often leading to overlapping mandates and compliance friction. SEBI’s current move is part of a broader
