SEBI Proposes to Introduce ‘Product Success Framework (PSF) for Stock Derivatives’

Consultation Paper, Dated: 08.06.2024

Presently, the ‘Product Success Framework’ is only applicable to index derivatives. This framework mandates that derivatives on an index should have sufficient turnover, open interest, and widespread participation. Similarly, SEBI has now proposed introducing additional exit criteria for single stock derivatives based on the performance of derivative contracts. Eligibility criteria for entry/exit of stocks in the derivatives segment are proposed along with the proposed range of values for each of the proposed criteria.

Click Here To Read The Full Update