SEBI F&O Framework, Iran-Israel Conflict And More—The Week That Was
Stay updated with top market-moving news, such as the cause behind the recent surge in brent prices and the upcoming Hyundai and Swiggy IPOs, every Friday on NDTV Profit.
From Nifty 50's 2% intraday tumble on Thursday, post the Securities and Exchange Board of India's new framework on derivatives trading, to oil prices rallying amid the ongoing Iran-Israel conflict, this week saw multiple events of interest and concern for investors.
NDTV Profit, in its weekly news wrap every Friday, brings you the major events shaping businesses, industry, and global markets.
SEBI Announces Six Changes To Curb F&O Frenzy
The Securities and Exchange Board of India has announced six new measures aimed at enhancing investor protection and promoting market stability in derivative trading. These include:
Each exchange will now offer derivatives' contracts for only one of its benchmark indices with a weekly expiry.
The contract size will increase from Rs 10 lakh to Rs 15 lakh.
Implementation of intraday monitoring of position limits in equity derivatives.
No calendar spread on expiry day of contracts.
Options buyers will now be required to pay premiums upfront, replacing the previous requirement to provide collateral to brokers for purchasing options.
Enhanced tail risk coverage on options expiry day by imposing additional margins on all tail positions.
Escalation In Iran-Israel Conflict
On Tuesday, the Israeli military reported that Iran had launched over 100 missiles towards Israel, marking a significant escalation in the ongoing conflict between the two countries, which has largely been fought through proxy forces until now.
"A short while ago, missiles were launched from Iran towards the State of Israel," the Israel Defense Forces stated, with Iran's Mehr News Agency confirming the missile launch.
This missile attack follows Israeli operations in southern Lebanon aimed at combating Tehran-backed Hezbollah. Earlier that day, the US issued a warning about an imminent attack from Iran.
In response to the escalating tensions in the region, crude oil prices have surged this week, as concerns mount over potential disruptions to supplies from the Middle East, which accounts for about a third of the world’s total oil production.
Major Players To Step Out With IPOs
Hyundai Motor India Ltd. is poised to launch what could become the country’s largest initial public offering as early as Oct. 14, according to people familiar with the matter. The price band for the anticipated Rs 25,000-crore offering is expected to be announced next week, with the IPO set for Oct. 14–15.
If successful, Hyundai's IPO would surpass the previous record set by the Life Insurance Corp. of India a few years ago and will consist entirely of an offer for sale from the company's South Korean parent.
Swiggy Ltd. has also filed initial documents for an IPO with SEBI on Sept. 26. This offering includes a fresh issue of Rs 3,750 crore and an offer for sale of 18.5 crore shares.
On Oct. 3, Swiggy's shareholders approved an increase in the fresh issue component of the IPO to Rs 5,000 crore. As part of the offer for sale, company founders Sriharsha Majety and Rahul Jaimini plan to sell over 17 lakh and 11 lakh shares, respectively. Other selling shareholders include Accel, Prosus, Meituan, Norwest Venture Partners, Alpha Wave Ventures, Coatue, and Tencent Cloud.
This is the first iteration of Swiggy's updated draft red herring prospectus, with a further updated version to be submitted to the Registrar of Companies and exchanges before the final red herring prospectus is filed.
Editor's Picks For The Week
Coldplay In India: BookMyShow Files FIR Against Scalpers
Coldplay is set to perform at the DY Patil Stadium in Mumbai on January 18, 19, and 21, 2025, as part of their much-anticipated Music of the Spheres World Tour. This marks the band's return to India after a nine-year hiatus.
Following the official ticket sales, prices skyrocketed in the black market, with tickets reportedly selling for over Rs 1 lakh. Official ticket prices range from Rs 2,500 to Rs 35,000. In response to the scalping issue, ticketing platform BookMyShow filed a formal FIR against ticket scalpers and black marketeers.
A spokesperson for BookMyShow announced on Oct. 2 that the company was actively combating ticket scalping and was considering cancellation of tickets sold "unethically." The statement reflects the company's commitment to ensuring fair access for fans.
