Govt to Address F&O Trading Challenges, Not Shut It Down: FM Sitharaman

Finance Minister Nirmala Sitharaman clarified that the government’s objective is to address challenges in Futures and Options (F&O) trading rather than discontinue it. Speaking at the 12th SBI Banking and Economics Conclave in Mumbai on November 6, she emphasised investor responsibility in understanding risks.

Government’s Stand on F&O

“Govt is not here to shut the door on F&O,” Sitharaman said, adding that the focus is on removing roadblocks and ensuring smoother operations. She reiterated that investors must be aware of associated risks when participating in derivative markets.

Banking Sector Priorities

The minister urged banks to become more self-reliant amid global volatility and uncertainty. She highlighted the need for deeper and wider credit flow and encouraged institutions to learn from past experiences while taking proactive steps for growth.

Building World-Class Banks

Sitharaman stated that discussions with the Reserve Bank of India (RBI) and banks are underway to create an environment conducive to building world-class banking institutions. She clarified that this effort goes beyond amalgamation and focuses on enabling operational growth.

Trade Agreement Efforts

The minister also noted that efforts are ongoing to finalise a bilateral trade agreement with the United States, following the imposition of a 50% tariff on Indian goods since August 27. She said negotiations are in progress and the commerce ministry is actively engaged in concluding the agreement.

Read More: Intraday Futures and Options Trading Gets Tougher.

Conclusion

Finance Minister Nirmala Sitharaman reaffirmed the government’s commitment to strengthening F&O markets and supporting banking sector resilience. With initiatives to build world-class banks and advance trade agreements, policy efforts remain focused on stability and growth.

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