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APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 17 NO. 202, 36 PAGES, `12.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 81,455.38 ▲ 99.54 NIFTY: 24,857.30 ▲ 21.20 NIKKEI 225: 38,525.95 ▲ 57.32 HANG SENG: 17,002.91 ▼ 235.43 `/$: 83.73 ▲ 0.01 `/€: 90.70 ▲ 0.05 BRENT: $78.90 ▼ $0.88 GOLD: `68,481 ▼ `46 Global funds eyeing us, don’t N E W S Sebi cracks down miss this ‘golden chance’: PM IN THE BANKS GET 90 DAYS TO ADOPTWILFUL DEFAULTER NORMS THE RBI HAS given 90 days to banks to comply with its final wilful defaulter guidelines mandating lenders to identify wilful defaults in NPA accounts with over `25 lakh dues, reports Piyush Shukla. ■ PAGE 7 CRICKET BOARD IN INITIAL SETTLEMENT TALKS WITH BYJU'S BCCI ON TUESDAY told the National Company Law Appellate Tribunal that it is in initial settlement talks with Byju's, reports Anees Hussain. ■ PAGE 4 RCAP: IIHL SEEKS COMPLIANCE BEFORE PAYMENT IIHL HAS TOLD THE NCLT it was ready to make payment as per the RCap resolution plan, but certain pre-approved conditions are yet to be fulfilled, reports Piyush Shukla. ■ PAGE 7 EXPLAINER Why banks need a higher liquidity cover ■ PAGE 9 7-POINT PLAN TO PROTECT RETAIL INVESTORS on F&O frenzy AKSHATA GORDE Mumbai, July 30 THE CAPITAL MARKETS regulator on Tuesday proposed several measures to rein in excessivespeculationinthefutures&options (F&O) market.The seven measures include a bigger minimum contract value of `20 lakh, a limit onweeklyoptions contracts to a single benchmark,upfrontpremiumpayments,and a smaller number of strike prices. Aconsultation paper,released onTuesday, comes following serious concerns that youngsters are risking theirfamilysavings in derivatives trades. The Securities and Exchange Board of India (Sebi) has estimated the losses from such trades in FY24 at an alarming `52,000 crore.Market participants and other stakeholders have until August 20 to submit theirsuggestions on the proposals. Sebi chairperson Madhabi Puri Buch said F&O volumes in the last three to four years hadmultipliedbyafactorwhichwasunimaginable.“In the past we felt there was no need for regulatory intervention because we were dealing with the micro issue...but today we feel it has become a macro issue,” Buch said. Shewas speakingataneventorganisedbythe National Stock Exchange (NSE). The notional turnover in the derivatives segment hit $6 trillion in early February.The surge in F&O volumes to levels that are the highest in the world — the result of a retail frenzy — has compelled the government as well as the regulator to raise the barriers.The government, in the Union Budget for 202425, hiked the securities transaction tax on F&O trades.Sebi observed in the consultation paperthat the increase in the minimum contract size would result in “reverse sachetisa- Allocation to states robust, Opposition misleading: FM THE PROPOSALS ■ Raise minimum lot size to `15-20 L FE BUREAU New Delhi, July 30 initially and to `20-30 Lafter 6 months ■ Limit weekly expiry to one benchmark index per stock ■ Mandate upfront collection of Prime Minister Narendra Modi at a CII event in New Delhi on Tuesday PTI ■ Remove calendar spread FE BUREAU New Delhi, July 30 options premiums from buyers benefit on expiry day tion of such risk bearing products”. The regulator has proposed an increase in the minimum contract size in a phased manner,from `15-20 lakh initiallyand to `20-30 lakh after six months. The prevailing minimum contract size of `5-10 lakh for derivative contracts was last fixed in 2015. CALLING INDIA’S PRIVATE sector a strong medium for realising the vision of Viksit Bharat, Prime Minister Narendra Modi onTuesdaysaid theworld is looking to invest in India and domestic industry should not miss the golden opportunity. Addressingapost-Budgeteventorganised by industry body CII, Modi said that wealth creators are the main driving force behind India’s growth story. He said India’s policies,commitment,determination, decisions, and investments are becoming the basis of global progress. “Today, the whole world is looking at India and you. Investors across the world are keen to come to India. World leaders are filled with positivity for India. This is the golden chance forthe Indian industry and we should not lose this opportunity,” Modi said. The government is highly focused on skill development and employment keeping in mind Industry 4.0 standards,the Prime Minister added. Continued on Page 6 Continued on Page 6 ■ Raise extreme loss margins for expiry day by 5% & 3% for day before expiry ■ Limit options strikes, streamline strike interval ■ Monitor position limits on an intra-day basis Madhabi Puri Buch, Sebi chairperson FINANCE MINISTER NIRMALA Sitharaman on Tuesday strongly rebutted the charge that the Centre is cutting down on fiscal transfers to states, especially to the ones ruled by Opposition parties, saying thatbudgetaryallocationtoallstatescombined are estimated to rise substantiallyin FY25. “The dues to the states are (being transferred) on time,”she said. Accusing the leaders of some states of making“misleading”statements,she said that the Budget for FY25 has allocated `22.91 trillionto allstates,whichis27.5% higher than the Budget Estimate of FY24. The allocation includes devolution of taxes, grants and special assistance, and funds undercentrallysponsored schemes, and central sector schemes. In her Budget speech,presented on July 23, Sitharaman had only mentioned two NIRMALA SITHARAMAN, FINANCE MINISTER LACK OF TRANSPARENCY (IN BUDGET NUMBERS) WAS THERE DURING UPA RULE, NOT IN THE NDA GOVT statesbyname—BiharandAndhraPradesh, ruled by BJP allies Janata Dal (United) and Telugu Desam Party,respectively. Continued on Page 6 No rethink on Chinese FDI: Goyal FE BUREAU New Delhi, July 30 THE GOVERNMENT IS not looking at a review of the policy on foreign direct investment (FDI) from China though the recent Economic Survey backed a more open approach to capital inflows from the neighbouring country to realise domestic manufacturing ambitions. “Thereisnorethinkingatpresenttosupport Chinese investments in the country,” commerce and industry minister Piyush Goyal said onTuesday,in the first categorical statement on this from a seniorgovernmentfunctionary. In2020,thegovernment made its approval mandatory for FDI from countriesthatsharelandborderswithIndia. ■ REPORT, PAGE 2 ■ EDIT: THE CHINESE CONUNDRUM, PAGE 8 Lucknow