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F&O trades and mutual funds are reportedly the focal point of the Securities and Exchange Board of India (SEBI) board meeting being held on Monday.  

According to reports, the markets regulator may approve tighter curbs on F&O trading due to the immense losses faced by individual traders.

Additionally, the board may discuss the introduction of a new asset class between mutual funds and portfolio management services to offer investors more diversity in investment management.

SEBI Chairperson Madhabi Puri Buch had mentioned at the Association of Mutual Funds in India (AMFI) event recently that the SEBI is on the verge of bringing MF lite regulations and has had detailed consultations on the subject. She mentioned that there needs to be some relaxation in terms of the distribution of these kinds of funds.

The SEBI had come out with a paper on the MF lite regulations previously, to relax the compliance requirement and foster ease of entry for those mutual funds that planned to move towards the arena of passive schemes only.

Another issue that the market regulator has been quite vocal about is insider trading.

The SEBI has proposed new measures to expand insider trading regulations. Key changes include redefining "connected person" by replacing "immediate relative" with "relative", to align it with the Income Tax Act.

Other issues like easing norms for research analysts, investment advisors' certification, fast-track right issue, and merchant bankers' regulations probably would be key discussions in the meeting.

As per a recent SEBI report, the aggregate losses of individual traders in the equity futures and options (F&O) segment exceeded Rs 1.8 lakh crore over the three-year period between FY22 and FY24. Over nine out of 10 individual traders in the equity futures and options segment continue to incur significant losses, revealed the study, adding that despite consecutive years of losses, more than 75 per cent of loss-making traders continued trading in F&O.