New Delhi, March 2 -- Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey, speaking on the risks faced by retail investors in the futures and options (F&O) segment, said the regulator has identified problem areas, especially in weekly index options, and is taking calibrated steps to discourage excessive speculation and protect investors.

In an interview with ANI, Pandey said SEBI's approach is to maintain "optimum regulation" so that markets remain both safe and innovative. He noted that derivatives markets serve important functions but require careful oversight when retail participation becomes risky.

"Futures and options markets are very essential. They help in price discovery and enable hedging. So they are impo...