Derivatives Suitability: Ananth Narayan Urges Market to Lead, Not Wait for SEBI

• Former SEBI WTM Ananth Narayan urges the market ecosystem (exchanges, brokers) to proactively implement a product suitability framework for derivatives, rather than waiting for SEBI.
• The debate gains urgency due to surging retail participation in derivatives, raising concerns about risks for inexperienced investors.
• BSE MD & CEO Sundararaman Ramamurthy proposes a 'glide path' approach, allowing investors to gradually access complex products as their market knowledge improves.
• Angel One Chairman Dinesh Thakkar highlights brokers' role in providing technology-driven nudges and alerts, while cautioning against strict entry barriers in India.
• Discussions include knowledge tests, experience-based access, portfolio-based eligibility, and stronger risk disclosures, with South Korea's model cited as an example.