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Tag: concentration risk

What Sebi’s ‘hard ceiling’ of 15% on open interest means for growth of brokers, clients: Zerodha’s Nithin Kamath explains
Stock Market

What Sebi’s ‘hard ceiling’ of 15% on open interest means for growth of brokers, clients: Zerodha’s Nithin Kamath explains

Zerodha founder and CEO Nithin Kamath said the 15% open interest (OI) limit at the brokerage level puts a hard ceiling on the extent to which a brokerage firm can grow and the pace of that growth. While the restriction limits scale, it ultimately benefits consumers by reducing concentration risk and preventing any single broker […]

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Sebi reduces weightings in Bank Nifty and tightens index rules to broaden representation
Stock Market

Sebi reduces weightings in Bank Nifty and tightens index rules to broaden representation

Markets regulator Securities and Exchange Board of India (SEBI) has imposed a cap on the weightings of top constituents in non-benchmark indices such as Bank Nifty, with an aim to reduce concentration risk and ensure broader market representation. Under the revised framework, the weight of the top stocks should not exceed 20%, while the combined […]

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