SEBI Consulting Stakeholders For Rules To Prevent Abuse Of Prop Trading Terminals

SEBI is undertaking consultations to finalise norms to prevent the abuse of proprietary desk trading terminals, according to NSE Chief Executive Officer and Managing Director Ashishkumar Chauhan.

Market participants, including stockbrokers, are being consulted currently, he told NDTV Profit on the sidelines of the 16th Assocham Capital Markets Conference on Thursday.

"Whenever that decision (from SEBI) comes, we'll implement them," he said.

Proprietary desk trading, also known as prop desk trading, is when a financial firm uses its capital to trade. Entities do this to raise funds for themselves. 

Last year, the Securities and Exchange Board of India came up with several provisions to curb volumes in derivates market, particularly to save the household wealth and retail investors from significant loss. These changes included higher margin requirements and reducing weekly indices, as now only two are available for weekly expiry.