With the number of new investor accounts falling by nearly half in the last fiscal and trade volumes nearing a plateau, regulator SEBI is mulling various steps to deepen the Indian stock market this year.
The measures are being undertaken to launch new products in the derivatives segment, and introduce no-frills trading accounts to attract new investors to cash market as well.
While the cash segment of the stock market involves sale and purchase of shares of listed companies, the derivatives trade provides for trade in contracts whose price is derived from change in the value of one or more underlying assets.
Derivative contracts are available with underlying assets like individual stocks, stock indices, currencies, and interest rates, among others. However, trade volumes have been relatively sluggish in most of the non-stock derivatives and the steps would be taken this year to boost these segments, a senior official said.