21 November 2012
Securities and Exchange Board of India (SEBI) has directed BSE and NSE to discontinue mini derivatives contract on the bourses to shield retail investors being attracted to it.
Mini derivatives with minimum contract size of Rs 1 lakh were introduced on the bourses in December 2007. Working of futures and options (types of derivative instruments) is complex and they are riskier than underlying shares. Hence they are not suited for small investors who are without expertise and are untrained. But quick returns from them have attracted small investors to them.