Non-protected products excluded as Securities and Exchange Board of India flexes its muscles

The Securities and Exchange Board of India’s recent guidelines for the issue and listing of structured products could have a significant impact on the country’s structured product market. While regulators work on ways to enhance investors’ protection, more stringent rules that include valuation requirements and the exclusion of non-protected structures could nonetheless affect the growth and scope for development of the market. Sarah Nowakowska reports

The regulatory environment in Asia has been changing rapidly in relation to structured products, in many ways mirroring the steps taken so far by regulators in the US and especially in Europe. The Securities and Exchange Board of India's (Sebi) latest round of guidelines for the issue and listing of structured products, which came into force in November, stands out in its attempt to regulate a more nascent derivatives market, and while investor protection remains a prime focus for the regulator