Govt not here to shut the door on F&O, says FM Sitharaman at SBI Conclave

Finance Minister Nirmala Sitharaman said that the government is here to address challenges in Futures and Options (F&O) trading and not to shut it down. 

"Govt is not here to shut the door on F&O," Sitharaman said Thursday, November 6, at the 12th SBI Banking and Economics Conclave 2025 in Mumbai. 

"Govt is here to remove the roadblocks and work on them...It is investors’ responsibility to understand risks," she added.

On banking and economy

The minister also urged banks to become more self-reliant in the face of volatility and uncertainty, which are "everyday language" in markets driven by global factors.

"Banks have to make sure they deepen and widen credit flow. We should learn from the past and not be fearful of steps to be taken," the minister said.

She also called for building "world class banks".

"For that we have to talk to the Reserve Bank of India (RBI) and banks to see how they want to take it forward," Sitharaman said, adding that work has begun towards this and that discussions are ongoing with RBI and banks. 

"This is not just about amalgamation. We need an environment where banks can operate and grow," she added.

At the same time, she said the government is also ensuring that growth does come come at the cost of fiscal balance.

"India has shown its capability despite global uncertainties. People have responded on GST reforms on the first day itself," she said.

The minister further claimed that GST reform has "kickstarted the biggest virtuous cycle for India" and that it could speed up growth to "what you want". 

"From September 22, consumption horizon is glaring; demand is coming out like an arc," she told the audience.

US-India trade deal

She also commented that "efforts [are] in full force" to finalise a bilateral trade agreement (BTA) with the US as India has been facing a hefty 50% tariff since August 27.

"Efforts to have trade agreements signed are in full force; will have to wait for conclusion," she said, adding that the commerce ministry is actively engaged in negotiations.