Web: Tech3 | Sebi's message for Fintechs; Laptop imports face restrictions; and more

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In today’s newsletter:

·         Sebi's message for Fintechs

·         Conditions apply: Laptop imports face restrictions

·         Blinkit ropes in Flipkart's Vipin Kapooria as CFO

Sebi's message for Fintechs

Markets regulator Sebi’s whole-time member Ananth Narayan has issued a stern warning to fintech companies across various sectors. 

·         Speaking at the Moneycontrol India Fintech Conclave 2024, Narayan emphasised the importance of maintaining ethical standards and promptly reporting any potential malpractices

Setting the context: The regulator and government have been concerned about most retail investors losing money in Futures and Options (F&O) trading. 

·         SEBI was also worried about brokers sharing revenue with finfluencers, who were not regulated

SEBI acted on these issues after public outcry, though it had industry support.

“We would much rather hear it from you than through inspections or media or from other intelligence,” Narayan said.

Capital formation agenda: Sebi's restrictions on F&O trading took effect on November 20 with initial trends suggesting a 35-40% drop in volumes.

·         Futures trading has been a significant contributor—up to 40%—of revenue for discount brokers

Narayan said that entrepreneurs have a better understanding of what's happening on the ground than the regulator.

“If you have an association, which can give a unified voice, that helps us. We need trusted advisors,” he added.

Narayan wants the regulator and ecosystem players to get ahead of possible tricky situations in the future.  

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