Top financial regulators plan panel to weigh risks in derivatives market

India's top financial regulators will form a committee to assess stability risks emerging from a surge in derivatives markets and suggest policy changes if required, two sources familiar with the matter said. Options trading in India has soared in the last five years, fuelled mainly by retail investors. The notional value of index options traded more than doubled in 2023-24 to $907.09 trillion from $447.69 trillion a year ago, exchange operator NSE says. The panel will be set up by the Financial Stability Development Council, which includes the finance minister, the central bank governor and the market regulator, the sources said. Its members and reporting timeline will be finalised in coming months, added the sources, who spoke on condition of anonymity, as they were not authorised to speak to media. ndia's finance ministry, the central bank, the Reserve Bank of India and the regulator, the Securities and Exchange Board of India, did not immediately respond to queries about the plan. The committee will assess potential systemic risks emerging from the surge in derivatives trading, the need for investor protection measures and for increased regulatory monitoring, the two sources said.